Housing Benefit and Pension Contributions

dippy-cat

Hello,

I know that when Housing Benefit is calculated 50% of pension contributions are taken into account, my question is I am also paying into a Stakeholder pension for my child, should this money be taken into account too?

Thank you

dippy-cat

Anyone know?

fluffymovie

Sorry could you explain exactly what a stakeholder pension for your child is please?

How old is your child?

antrobus

fluffymovie wrote: »

Sorry could you explain exactly what a stakeholder pension for your child is please?

How old is your child?

Well there's no minimum age for a stakeholder pension it seems.

dippy-cat wrote: »

I know that when Housing Benefit is calculated 50% of pension contributions are taken into account, my question is I am also paying into a Stakeholder pension for my child, should this money be taken into account too?

Yes, I believe the rules are that up to half of your pension contributions may be disregarded for HB purposes, but I wouldn't have thought the same would apply to pension contributions you made on behalf of someone else. You're just gifting money to your child - the fact that you're gifting it one form rather than another is neither here nor there.

dippy-cat

fluffymovie wrote: »

Sorry could you explain exactly what a stakeholder pension for your child is please?

How old is your child?

A stake holder pension is a type of personal pension plan, it is flexible and low cost.
My child is 15.

dippy-cat

antrobus wrote: »

Well there's no minimum age for a stakeholder pension it seems.




Yes, I believe the rules are that up to half of your pension contributions may be disregarded for HB purposes, but I wouldn't have thought the same would apply to pension contributions you made on behalf of someone else. You're just gifting money to your child - the fact that you're gifting it one form rather than another is neither here nor there.

That's pretty much what I thought, only it does look like my council may be including it in their calculations. I have asked them to check what is correct as I don't want to end up with an overpayment.

Thank you