Personal Pension and UC

soblivion

kaMelo said:

It's obviously not my choice to make but, for what it's worth, I don't think taking the whole lot in one go would be the wisest choice as it impacts both UC and CTR. Even it it's temporary it's something you could probably do without. And while you don't mention how much state pension your husband receives it is taxable income which probably means income tax would be payable on the majority of the £13,500 left after the tax free lump sum.

It's good to know you've informed DWP, you hadn't implicitly said you had so thought I'd ask. You can't do any more than inform them, any delay is now up to them. Reading the ADM paperwork more closely I came across this too under H1580:

 From what date should the DM take notional income into account
1 Assume that an application was made on the date that there is sufficient evidence to show that a notional income should be calculated and
2.Add the estimated time it would take the pension fund holder to process an application for that income.

Example

Holly is in receipt of UC. Her husband, Bernard, is of qualifying age for SPC.

On 1 November the DM receives evidence that Bernard is entitled to a personal pension but has not

bought an annuity or drawn an income.

The pension fund holder states that Bernard’s scheme can provide an income. In Bernard’s case 100% of

the rate of the annuity which the fund would generate, based on the Government’s tables, is £23 a week.

Once an application is made it would take the pension fund holder six weeks to arrange for the maximum

income to be paid.

In that example there is a six week delay before any notional income would be classed as payable. Given the short amount of time between your husband reaching SPA in February and now, around six to eight weeks, then actually I don't think they could fairly claim you've had an overpayment. Setting up an annuity takes time, the guidance states this, you have informed them of the pension in a timely manner and any delay on working out what to do is on their part rather than yours.

I appreciate you mention things might be tight if you're classed as taking an income without actually taking it. Only you can make the decision as to what is right for you. The reason I mentioned about irregular drawdown is that, if done correctly, it can be the most beneficial way to access the money in the pension although it has to be said the benefits of doing so are considerably lower when claiming UC than when claiming pension credit due to the different rules on capital deductions...

Thank you very much for all the advice you have given, it's been so helpful.