pension contributions when claiming uni credits, housing benefit, pip & limited capability for work

patersons

When in receipt of universal credits, housing benefit, pip and limited capability for work can I contribute to a pension without it affecting any of these benefits? Am I correct in assuming that a pension pot has no effect on receipt of benefits ie does not count on savings. The recipient is 26 and is unlikely to work

Marcon

patersons said:

When in receipt of universal credits, housing benefit, pip and limited capability for work can I contribute to a pension without it affecting any of these benefits? Am I correct in assuming that a pension pot has no effect on receipt of benefits ie does not count on savings. The recipient is 26 and is unlikely to work

As you've spotted, its not safe to assume anything - and this is more a benefits question than a pension one. Suggest you contacy https://www.turn2us.org.uk and might quite sure of the facts.

xylophone

I contribute to a pension without it affecting any of these benefits?

The recipient is 26 and is unlikely to work

The recipient of the benefits has a personal pension /is going to open one and you are going to make a "third party contribution"?

Or he will make contributions from his UC/PIP etc?

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100

It would appear that his income does not qualify as "relevant earnings"?

If so, any contribution would be limited up  to a net £2880 - the pension provider would claim relief of up to £720 and add it to the pension.

The pension  does not count as savings.

When the time comes to draw the pension, it may have an effect on what he may receive by way of benefits.

calcotti

A pension pot is ignored for benefits purposes until the claimant reaches state pension age.

patersons

Thanks Marcon yes, your correct that its more of a benefit question. As its on behalf of a family member I just wanted to be surer of the situation before making contact with benefits office.

xylophone, it will be a personal pension Soley from benefit contributions. Thank you for your other comments on amount of contributions, pension pot not counting as savings and drawing on pension would count as income. That does confirm what I've found out.

likewise Calcotti, thank you

xylophone

drawing on pension would count as income. 

Or possibly capital, depending on how the money is drawn.

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

patersons

Xylophone, thanks this link looks incredibly interesting. My main stumbling block was if pension contributions were made would benefits be lost. I think you've already answered this question, however I will read through this just to be sure. This is not for me and a do not want to jeopardise the benefits for the person whose claiming.

thankyou, youve been very kind

michaels

If you are earning the pension payments are deducted from the income before it is assessed for benefits which can mean that the payments are very cheap indeed even more so if sal sac.