Universal credit and private pension contributions

Dazed_and_C0nfused

Deduction of (valid per the legislation) pension contributions is referenced in the tax credit renewal notes HMRC publish each year.

I could understand HMRC initially querying a difference between your taxable income and what you declared to tax credits but once you have explained the discrepancy (possibly with supporting evidence) there really shouldn't be any problem.

UC is obviously a whole different ball game 

WillowCat

It took about 5 months, after an MR DWP sat on for ages, and the involvement of my MP to get my pension contributions recognised.

It had been running smoothly for about 18 months; each month I reported the contribution on my journal and emailed payslip and bank statement showing contribution to my case manager.  The statement would auto-calculate the day after assessment period ended, then case manager would manually recalculate a few days later.  Often I would get two separate payments from them.

A few days ago, about an hour after I reported my most recent contribution, I got an angry phone call from DWP (different office from case manager) saying I shouldn't be claiming UC at all if I can afford such high pension contributions (I had increased them recently when I took on a temporary 3 month extra hours contract).  They asked if I was in financial difficulty - and when I said I wasn't, insisted that UC could only be claimed by people who were.

They mis-quoted legislation and insisted it was deprivation of capital - even though I explained it couldn't be as income is not capital until the end of the assessment period following the one it is received in.  

They said they had 'allowed' me my modest original contribution rate, and the subtext was that they had done me a favour at the time and I was now abusing that.

They then said they would be 'looking at the law' before deciding what to do next.

Ironically in real life my work is as a benefits adviser, so I'm comfortable with the appeal process and dealing with DWP.  I do feel though for other claimants who are subject to bullying in this way.

For the first time, my statement hasn't auto-calculated, so they may have put a hold on my claim.

We shall see what the next few days brings!

calcotti

WillowCat, please keep us updated on this. It’s a very interesting issue - although not many are in a position to take advantage of it.

It is depressing how, sometimes at least, DWP appear to be ignorant of the law.

Secretsusie

What a strange comment the dwp made.  UC is based on income, there's no legislation that sayes you can only have it in financial difficulty.  They didn't "allow" your modest pension conts, they processed them in line with the legislation.  
One person at dwp can't decide for themselves to alter the legislation.   I'm pleased you are confident with the process but it's very disappointing it's needed. 

steely333

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

TMel42

steely333 said:

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

Great news! I'm still waiting for the tribunal regarding mine. I have to do a seperate MR regarding my professional fees. I've been searching and searching the UC regs to find where it covers professional fees but can't find them as yet - would you know whereabouts I should be looking?

NedS

steely333 said:

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

That is the correct outcome - well done!

I would advise you notify them of your pension contribution every month at the end of your Assessment Period. If they want evidence, they will ask for it. It seems to vary on a case by case basis how they ask you for it). They will then need to manually recalculate your payment every month. You will likely get 2 payments every month - the initial incorrect amount and a payment for the balance that is owed to you.

steely333

NedS said:

steely333 said:

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

That is the correct outcome - well done!

I would advise you notify them of your pension contribution every month at the end of your Assessment Period. If they want evidence, they will ask for it. It seems to vary on a case by case basis how they ask you for it). They will then need to manually recalculate your payment every month. You will likely get 2 payments every month - the initial incorrect amount and a payment for the balance that is owed to you.

Yes cheers Ned this is what i think i will have to do, nearer the time and hope the person on the other end of my journal can read whats happened and passes it on accordingly when i upload my screenshot every month even if i get it in two payments as long as i get it, ill be a happy chappy🙂.

steely333

TMel42 said:

steely333 said:

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

Great news! I'm still waiting for the tribunal regarding mine. I have to do a seperate MR regarding my professional fees. I've been searching and searching the UC regs to find where it covers professional fees but can't find them as yet - would you know whereabouts I should be looking?

Thanks Tmel sorry i have never come across anything in UC with proffesional fees🤔Good luck with your MR

Icequeen1

TMel42 said:

steely333 said:

So finally got my MR after a couple of phone conversations just to explain things clearer, with all the evidence i provided they had no problem deciding in my favor.🙂

I have determined that the voluntary pension contributions that you are making can be disregarded for the purposes of UC. However, future entitlement to UC may need to be manually altered to disregard your pension contributions as UC bases your earnings on Real Time Information(RTI). This may also require you to provide evidence of any future pension contributions that you made. Your entitlement to UC from xx/xx/2020 will subsequently be revised to reflect your pension contributions and any UC that you are owed will be paid to you in the coming days.
All i sent as proof was screenshots of my contributions in my pension account,
And will now have it all backdated for a year.
In future as he stated i will probably contact my journal ask her to put the upload button back on upload my monthly screenshot every month and all should be good.🤞
Ill let you know if that goes ok end of month👍

Great news! I'm still waiting for the tribunal regarding mine. I have to do a seperate MR regarding my professional fees. I've been searching and searching the UC regs to find where it covers professional fees but can't find them as yet - would you know whereabouts I should be looking?

Are you employed or self-employed?

If employed - it is Reg 55 https://www.legislation.gov.uk/uksi/2013/376/contents/made - self-employed is a bit further on.