Is a SIPP value, counted as capital for entitlement to benefits?

Gary_2021

Hello,

I'm wondering if the value of a SIPP (Self Invested Personal Pension) is counted as capital whilst working out the entitlement to benefits (Universal Credit/ Housing Benefit).
I'm also wondering if I am allowed to make contributions into a SIPP, whilst on benefits, as well as invest within a SIPP.

Thank you

Alice_Holt

No, a SIPP is not counted as capital whilst you are under SPA.

Reasonable contributions into a SIpp can be made.

Large SIPP contributions to retain an entitlement to means-tested benefits, may be viewed as deprivation of income / capital by UC / DWP  

poppy12345

GaryMSE said:

Hello,

I'm wondering if the value of a SIPP (Self Invested Personal Pension) is counted as capital whilst working out the entitlement to benefits (Universal Credit/ Housing Benefit).
I'm also wondering if I am allowed to make contributions into a SIPP, whilst on benefits, as well as invest within a SIPP.

Thank you

Just so that you're aware, new claims for housing benefit are no longer possible. It's all now part of UC and now called the housing element which makes up part of your maximum UC entitlement. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=a13bc27d-bfe3-4a1c-859e-60d492096213

NedS

Alice_Holt said:

Reasonable contributions into a SIpp can be made.

Large SIPP contributions to retain an entitlement to means-tested benefits, may be viewed as deprivation of income / capital by UC / DWP  

This part is not correct. All relievable pension contributions are to be deducted when calculating income for UC.

Alice_Holt

NedS said:

Alice_Holt said:

Reasonable contributions into a SIpp can be made.

Large SIPP contributions to retain an entitlement to means-tested benefits, may be viewed as deprivation of income / capital by UC / DWP  

This part is not correct. All relievable pension contributions are to be deducted when calculating income for UC.

     Large SIPP contributions to retain an entitlement to means-tested benefits, may be viewed as deprivation of capital by UC / DWP 

    This advice was given in response to the OP's comment that  " as well as invest within a SIPP.". It was intended to alert the OP that a large transfer out savings into a SIPP might be viewed as deprivation of capital by a UC / DWP  decision maker in some circumstances.

   I was not writing about the calculation of earned income for the purposes of UC (obviously relievable  contributions into an registered pension scheme are deducted - per the guidance set out below), apologies if my wording suggested otherwise.   

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/935544/admh3.pdf

NedS

Alice_Holt said:

     Large SIPP contributions to retain an entitlement to means-tested benefits, may be viewed as deprivation of capital by UC / DWP 

    This advice was given in response to the OP's comment that  " as well as invest within a SIPP.". It was intended to alert the OP that a large transfer out savings into a SIPP might be viewed as deprivation of capital by a UC / DWP  decision maker in some circumstances.

   I was not writing about the calculation of earned income for the purposes of UC (obviously relievable  contributions into an registered pension scheme are deducted - per the guidance set out below), apologies if my wording suggested otherwise.   

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/935544/admh3.pdf

Thanks for the clarification @Alice_Holt

Yes, making a very large contribution (more that one's earnings in that month) out of savings could indeed be deemed deprivation of capital, but as long as the monthly contributions do not exceed earnings, then they can be deemed to have come from that earned income.