Would paying off my IVA and credit card with pension pot affect my UC?

TheOriginalDoubleG

Hello people.  I'm new to Universal Credit.  I'm looking for some help :-)

chiarieds

Hi @TheOriginalDoubleG - & welcome to the community. Please say what your query is about UC, & I'm sure someone will help.

TheOriginalDoubleG

Hi @chiarieds,  I'm looking to pay off my IVA and credit card with some money from my small pension pot that is available to me in Aug.  Would this affect my UC? 

poppy123456

That's correct @Biblioklept. Savings of up to £6,000 are ignored anyway. If this amount takes your total savings on the last day of your assessment period to more than £6,000 then there's a £4.35 per month deduction for every £250 or part there of over this amount.

Savings of more than £16,000 will end your UC and any other means tested benefits you maybe claiming.

If you're also taking a weekly/monthly draw down then this will reduce your UC £1 for £1 so it's not worth doing this.

TheOriginalDoubleG

The money will leave my account almost the moment it hits.  I'm 55 in aug but not planning on retiring yet.  I'm looking at taking £7000 and pay it out straightaway 😎