Universal Credit/Pension Refund General Query

Legacy_user

Hi,

Hoping someone can help me here as I am struggling to get a straight answer or any info on this.

I live with my boyfriend. He is currently out of work long term. I work 27 hours a week plus I am self employed which tops up my employed earnings.

My boyfriend needs to claim benefits for health reasons but the only benefit now available is Universal Credit. Even though I work, we had to make a joint claim, meaning I had to go to all the interviews to set it up and my income each month has to be added to the account and they work out the amount of Universal Credit given, from this.

This is really frustrating as now when I want to do overtime or take on extra self employed work.. it is actually more damaging to us as the amount of UC goes down. Even though I am on the claim, all the money goes to him.

Recently I received notification that I am entitled to a refund on a pension I paid into via an old job I had years ago. This is a few hundred pounds and I could really do with this money as I have car insurance coming up and have just discovered I owe a bit of tax from self employment.

My question really is, if I claim back this pension refund, will I have to declare that to UC. If so it would mean a month of my partner getting next to no money, therefor the extra money i'm getting from the pension refund would end up being used to fill that gap from reduced UC instead of me being able to use it for the things I need.

Also, as I receive none of the money from UC even though I'm on the claim, I haven't mentioned UC on my self assessment. I'm now worrying this is wrong too but can't see any option where it would be appropriate.

I am really unimpressed with how UC is calculated and given. I am not financially responsible for my partner, yet my income is being used to work out how much he is given. We are not married, we just live together. How would they do a UC claim for two friends living together? Would a friends income make a difference to the benefit entitlement? It's becoming massively frustrating that I can't earn extra money without it meaning my boyfriend gets less and if it affects my self employed earnings too even though I get none of the UC money then I'm really going to be at a loss.

I am really stuck and have no idea how to get advice on this so any help would be much appriciated.

To sum up what i'm asking, as i'm worried this sounds complicated (which it is):

Will claiming my pension refund have to be declared to UC and effect the benefit my partner needs?

Do I need to mention UC on my HMRC self assessment, as i'm on the claim, even though I see none of the money? I can't find an option for this in the form.

Thanks.

calcotti

dikittypants wrote: »

Also, as I receive none of the money from UC even though I'm on the claim, I haven't mentioned UC on my self assessment. I'm now worrying this is wrong too but can't see any option where it would be appropriate.

UC is not taxable income so even if it was paid to you you would not need to inform HMRC on your self assessment.

dikittypants wrote: »

I am really unimpressed with how UC is calculated and given. I am not financially responsible for my partner, yet my income is being used to work out how much he is given.

Means tested benefits have always treated a couple as a benefit unit. The expectation is that you will support each other when necessary and the state will only help if your joint income is low. Universal Credit is no different to what has gone before in this regard.

pmlindyloo

dikittypants wrote: »

Hi,

Hoping someone can help me here as I am struggling to get a straight answer or any info on this.

I live with my boyfriend. He is currently out of work long term. I work 27 hours a week plus I am self employed which tops up my employed earnings.

My boyfriend needs to claim benefits for health reasons but the only benefit now available is Universal Credit. Even though I work, we had to make a joint claim, meaning I had to go to all the interviews to set it up and my income each month has to be added to the account and they work out the amount of Universal Credit given, from this.

This is really frustrating as now when I want to do overtime or take on extra self employed work.. it is actually more damaging to us as the amount of UC goes down. Even though I am on the claim, all the money goes to him.

Recently I received notification that I am entitled to a refund on a pension I paid into via an old job I had years ago. This is a few hundred pounds and I could really do with this money as I have car insurance coming up and have just discovered I owe a bit of tax from self employment.

My question really is, if I claim back this pension refund, will I have to declare that to UC. If so it would mean a month of my partner getting next to no money, therefor the extra money i'm getting from the pension refund would end up being used to fill that gap from reduced UC instead of me being able to use it for the things I need.

Also, as I receive none of the money from UC even though I'm on the claim, I haven't mentioned UC on my self assessment. I'm now worrying this is wrong too but can't see any option where it would be appropriate.

I am really unimpressed with how UC is calculated and given. I am not financially responsible for my partner, yet my income is being used to work out how much he is given. We are not married, we just live together. How would they do a UC claim for two friends living together? Would a friends income make a difference to the benefit entitlement? It's becoming massively frustrating that I can't earn extra money without it meaning my boyfriend gets less and if it affects my self employed earnings too even though I get none of the UC money then I'm really going to be at a loss.

I am really stuck and have no idea how to get advise on this so any help would be much appriciated.

To sum up what i'm asking, as i'm worried this sounds complicated (which it is):

Will claiming my pension refund have to be declared to UC and effect the benefit my partner needs?

Do I need to mention UC on my HMRC self assessment, as i'm on the claim, even though I see none of the money? I can't find an option for this in the form.

Thanks.

Since you are living together as man and wife then Universal Credit will treat you the same as a married couple. Your situation is not the same as two friends who live together as they are treated as two households. You have one household.

From what you have said it seems that you have to sit down with your partner and have a chat about finances. If he has health problems and cannot work long term then you will need to decide whether you want to support him in the same way that a married couple would (for better, for worse etc etc)

Those are the regulations and separate financial arrangements in a relationship are never treated as separate for means tested benefits purposes.

The Universal Credit is in both your names and the money received is for you both. For example, if you are renting a property together then there would be a housing element within your UC which should go towards your rent - something else you need to discuss.
Who has been supporting your partner if he is out of work long term?

If you partner has health problems and unable to work then he should produce a fit note from his doctor stating his health problems. He would then eventually be called for a work related assessment and his conditionality group decided. Did the work coach discuss this with you both? Does he have to look for work at the moment or do you earn sufficient to allow him not to have to do work related activities.

What health problems does he have? Does he have care/mobility needs? He might be eligible for PIP if he does. This is non means tested.

As regards your refund of your pension I believe this would be seen as capital not income. Best to mention it on your journal with the details so that the DWP is aware of it.

This is probably not what you want to hear and many people believe that the DWP is 'out of touch' with modern day financial arrangements for couples - but it is what it is - another subject for the discussion forum.

calcotti

Is the pension a private pension that you have paid into which you can now close and get a refund from? In that case I think that it will be capital.

If on the other hand it is a pension you have paid into through your employer with deductions from your salary then I assume that any refund will appear on your next payslip. I think in this case it may well be treated as earnings and a 63% deduction will be made from the next UC payment.

System

Thanks for your replies.

I paid into the pension through my employer at the time. I haven't worked for them for years so this refund has come out of the blue. I think it was an error on their part that they didn't tell me I was entitled to a refund as soon as I left the job. The refund, if I choose to take it, would just be paid directly into my bank account.

There is a housing element included in UC but the whole amount goes to him. I pay my part of the rent from my wages and he has help from his parents for his half of things. So at the moment, I keep my income, he keeps the UC payment and any part of his 'half of the rent and bills' that he can't cover, his parents help with. I don't earn nearly enough to cover it all myself even with the UC. But earning more means UC goes down. So it's all a bit of a catch 22.

He had a work capability assesment which was accepted as he has long term sickness. It all started with a cancer diagnosis but now the main issue is his mental health problems.

We applied for PIP for him, over a year ago now... We went to the assessment appointment and they said he wasn't entitled to it. We have appealed...but that's the last I've heard from them.

I think they are out of touch really.. The way we both see it is that my income should be my income and his should be his and that we both pay half of the things that we share. We aren't married and never intend to be. If I made enough money I'd love to be able to pay for the both of us but this is just never going to happen with my wage. He used to be able to claim benefits for himself, even whilst living together. I think it was ESA beforehand. Which meant my income was mine and he would look after himself with that. But since UC it's been difficult. Some months I really want to earn some extra money to cover my own expenses but if I do it means my partner has nothing.

He wants to work but it's going to be a while before he's fully able to again.

calcotti

dikittypants wrote: »

I paid into the pension through my employer at the time. I haven't worked for them for years so this refund has come out of the blue. I think it was an error on their part that they didn't tell me I was entitled to a refund as soon as I left the job. The refund, if I choose to take it, would just be paid directly into my bank account.

I think that's capital then.

dikittypants wrote: »

The way we both see it is that my income should be my income and his should be his and that we both pay half of the things that we share.

That's not the way means tested benefits work.

Caz3121

dikittypants wrote: »

He used to be able to claim benefits for himself, even whilst living together. I think it was ESA beforehand. Which meant my income was mine and he would look after himself with that. But since UC it's been difficult.

It sounds like he was claiming contribution based ESA which does not look at household income. Before UC came along, when contribution based benefits ran out, the move would have been to income based ESA and because of you working more than 24 hours per week would have been £0.
If people live together as a couple then they are treated as a couple for income based benefits. (much as you would like to keep your money and have taxpayers support him instead)

Alice_Holt

"We applied for PIP for him, over a year ago now... We went to the assessment appointment and they said he wasn't entitled to it. We have appealed...but that's the last I've heard from them."

Chase this up with the DWP.
What stage did you reach in the appeal?
"Over a year ago" suggests to me that something has gone wrong with your appeal process.

This outlines that process:
https://www.advicenow.org.uk/guides/how-win-pip-appeal