Hi, looking for some LWRCA advice

Kenzie23

Hi everyone.  I am looking for some advice.  My husband and I were iro uc Getting £105 per month and our rent paid.  My husband has a forces pension of £745 which is the reason for the low amount of uc.
i decided to take my pension early with a small lump sum.  I receive £152 per month which I thought would result in me having to pay £45 to my rent this being the balance and also knowing I wouldn’t get the £105.  I also had the lwcra for being disabled.  My work coach has advised me that i am now eligible to pay full rent because of my income.  I am going to be around £200 worse of and I am not sure about my council tax.  I know the lwrca is exempt from an increase in earnings.  Can I still get this element or have I just put myself on a road to debt  tganks

Alex_Alumni

Hi @Kenzie23 thanks for your query, I've merged the two posts for you so it's easier to read, and marked it as unanswered. I'm sure our members can hopefully advise you soon, but if there's anything we can help with please do ask.

Alex

Kenzie23

Thanks Alex

poppy123456

Hi,

Any lump sum you take from your pension will be classed as savings. If this increases your total savings to more than £16,000 then you won't be entitled to any UC. For every £250 over £6,000 your UC will reduce by £4.35 per month.

If you receive an income per month/week from your pension then this is classed as income and will reduce your UC £1 for £1, just like it does with your husbands pension.

The LCWRA element is part of your maximum UC entitlement and can be reduced just like any other element. It's not exempt from any earnings and your pension is not classed as earnings, it's classed as other income which reduces your UC £1 for £1.

Whether there will be any entitlement to UC will depend on what your maximum entitlement is.

Did you get any expert advice before taking your pension? It's never worth cashing in any pension for a weekly income when claiming any means tested benefits.

Have either you or your husband worked at all in tax years April 2019 to March 2021? If you have then you'll be able to claim New style ESA which isn't means tested. Any pension of up to £85 per week is ignored but for every £1 over this amount your ESA will reduce by 50p.

Council tax reduction can be claimed from your local Authority but your pension will be classed as income.

Do you of you claim PIP or DLA?

calcotti

Kenzie23 said:

 I am going to be around £200 worse of and I am not sure about my council tax.  I know the lwrca is exempt from an increase in earnings.  

I think may have misunderstood. If you have LCWRA there is a Work Allowance which means some earnings are ignored. Earnings means money paid by an employer for work or from self employment. Pension income is not earnings. All pension income is deducted in full from UC payable as was already the case with your husband’s pension.

You are still entitled to have the LCWRA element included in the calculation of your maximum UC amount.

If you were getting UC of £105/month and now have a pension of more than £105 then there would be no UC entitlement.

However if you were getting £105 and your rent paid then your overall UC entitlement is obviously greater than £105. If your pension is £152/month then the £105 would stop and you would be expected to pay £47/month towards your rent. The rest of your rent should still be paid. I don’t know why your work coach would say otherwise. Wait until your next statement to see what it says.

The above assumes the lump sum doesn’t take your total joint capital over £6,000. If it does, anything over £6,000 will further reduce your UC by £4.35/month for every £250, or part thereof, over £6,000.

Generally taking a pension while on UC makes no sense because you are no better off.

Kenzie23

Morning thanks for advise. I thought also that t I would just pay the difference.  I took my pension early. I needed the lump some to pay back my parents but genuinely never thought I would get a monthly pension as well. My own stupidity but I would rather be honest.  I am nit sure what I can do now.  

calcotti

Kenzie23 said:

I am not sure what I can do now.  

As advised, the work coach appears to be wrong. Have you had a UC statement since advising them of the pension income? How much is your joint capital now? 

Kenzie23

Hi  i have been in touch again and they have confirmed they are paying a certain amount of my rent.  Thanks so much for your help everyone. 

calcotti

Good. (A reminder that work coaches don't do the calculations!)