Universal Credit Help - can I pay my mortgage with a pension lump sum?

DMW19
DMW19 Online Community Member Posts: 4 Listener
edited January 19 in Universal Credit (UC)

Hi. I’m about to lose the child element from UC for my son, also child benefit. I’ve been trying to overpay what I can on my mortgage so the reduction isn’t as hard hitting. I have a small pension pot of £5,500 which I would like to pay straight into my mortgage but don’t understand the rules on UC as only migrated recently and takes some understanding. My income is LWRCA contributions, UC and eldest son pays £40 a week board. I am in receipt of PIP but at renewal/assessment stage and If not awarded then will not be fighting as not well enough so not including this in income. When I receive this payment how do UC need to be informed please. Could someone walk me through the journal please as it’s so complicated. The whole payment will be paid into the mortgage.

Comments

  • DMW19
    DMW19 Online Community Member Posts: 4 Listener
  • Rosie_Scope
    Rosie_Scope Posts: 7,544 Scope Online Community Coordinator

    Hi @DMW19, Welcome to the community. You can sometimes use money to pay off debts if you have evidence of this, but just to be sure, it may be worth speaking to a benefits professional who can look at your claims in more detail and tell you the best way of doing things. Turn2us have a search tool here in case that's something you'd like to do: https://advicefinder.turn2us.org.uk/

    I'm sure there will be some members who have had a similar experience, so I hope they'll find your post and offer some advice soon too. Hope you'll enjoy your time on the community ☺️

  • DMW19
    DMW19 Online Community Member Posts: 4 Listener

    Hi and thank you for the welcome. Struggling to find anyone who has knowledge of Universal Credit. Such strange rules x

  • SwiftFox
    SwiftFox Online Community Member Posts: 164 Empowering
    edited January 19

    The only thing I knew was, before on income support before UC, you were never allowed to do this, you had to live on the income. But times may have changed🤷

  • DMW19
    DMW19 Online Community Member Posts: 4 Listener
    https://forum.scope.org.uk/discussion/comment/1096020#Comment_1096020

    UC is totally different.

    The rules are crazy with UC. Don’t make sense.

  • SwiftFox
    SwiftFox Online Community Member Posts: 164 Empowering
    edited January 19

    Is a mortgage counted has a debt?.But I'm sure (not certain) it won't matter now. But I'd wait for Kimi87 answering.

  • Kimi87
    Kimi87 Online Community Member Posts: 8,125 Championing

    Repayment of debt (including mortgage) is generally not considered deprevation of capital for UC.

    The circumstances on the last day of your Assessment Period are the most important.

    So if the money has gone into your bank account then straight out, and on the last day of AP it isn't there, there is nothing to report.

    If you have a standard financial review (the usual request is ID & 4 months of bank statements) making that transaction visible, you might be questioned about it.

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