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

TheOriginalDoubleG
TheOriginalDoubleG Community Member Posts: 3 Listener
edited June 2022 in Universal Credit (UC)
Hello people.  I'm new to Universal Credit.  I'm looking for some help :-)

Comments

  • chiarieds
    chiarieds Community Member Posts: 17,413 Championing
    Hi @TheOriginalDoubleG - & welcome to the community. Please say what your query is about UC, & I'm sure someone will help. :)
  • TheOriginalDoubleG
    TheOriginalDoubleG Community Member Posts: 3 Listener
    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
    poppy123456 Community Member Posts: 64,375 Championing
    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
    TheOriginalDoubleG Community Member Posts: 3 Listener
    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 😎 

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