benefits universal credit and Lcwra and private pension

12_Ismail

I receive those two benefits and soon to receive a private pension at age 60 of £442 pcm how much would I lost from benefits ? Also a lump sum over 16k

Kimi87

What is the lump sum for?

12_Ismail

It's part of the pension as there's two choices a higher monthly payment, without a lump sum ,or a lesser monthly payment with the lump sum , I will choices the option with the lump sum ,

Thank you for your reply

Kimi87

You can pay off debt with no penalties from UC, so if you paid off any debt ASAP after receiving the money, your claim might not end entirely.

Otherwise the lump sum will end your Universal Credit claim. The maximum you can have in capital is £16k.

Once your money is under £16k, you can apply for UC again, but:

You would have to start again with the LCWRA process.

Your pension would be deducted in full from your UC award.

UC make a deduction of £4.35 for every £250, or part thereof, for capital over £6000.

So with those two deductions I'm not sure if you would receive any UC money if your capital was only slightly under the limit, especially as at the beginning of your claim you'd only be entitled to Standard Allowance, and if you rent Housing Element.

You could try a benefits calculator:

https://www.gov.uk/benefits-calculators

You can pay off debt with no penalties from UC, so if you paid off any debt ASAP after receiving the money, your claim might not end entirely.

If you choose instead to take the higher monthly payment, it will be deducted in full from your UC award.