Universal Credit won't deduct SIPP contributions

NewBe

Anyone else having problems getting Universal Credit to deduct SIPP contributions from earned income?

We were migrated to UC in April and have transitional protection for 12 months (due to capital above threshold). My partner doesn't have an occupational pension but pays monthly contributions into a SIPP. We have had no issues with Tax Credits deducting the total SIPP contributions at renewal.

UC relies solely on HMRC/RTI reporting which doesn't include personal pension contributions. The UC advisors have a 'computer says no' attitude to any queries.

I have left multiple journal messages linking UC regulations on pension contributions and explaining how RTI won't include SIPP contributions, and each time the response is 'contact HMRC or your work'.

I left a message asking for a mandatory reconsideration over a week ago with no response. Today I managed to get through to the helpline and was again told 'we only rely on HMRC/RTI information and can't make any changes'. I again asked for a MR and was told a case manager would have a look at the journal.

Not sure if this worth pursuing if I have to go through this every month.

michaels

At least you got a response to your journal entries, mine have just been ignored.  I think there is a complaints process, have you tried that?

Feedback on here seems to be once you manage to get one payment adjusted it then should be much easier in subsequent months.

NewBe

michaels said:

At least you got a response to your journal entries, mine have just been ignored.  I think there is a complaints process, have you tried that?

Not tried complaints process, just waiting for someone with some knowledge of UC and pensions to respond - might be waiting until the end of transitional protection

Spoonie_Turtle

First thing to establish, does your partner work?  Because if not then paying into a SIPP is irrelevant in terms of deductions for earnings.

If they do, then yes by law pension contributions should be taken into account.  But people have a lot of trouble getting UC to do it.  There's a very long thread here https://forums.moneysavingexpert.com/discussion/6001734/universal-credit-and-private-pension-contributions
And no doubt others if you do a search for 'UC pension'.

NewBe

Spoonie_Turtle said:

First thing to establish, does your partner work?  Because if not then paying into a SIPP is irrelevant in terms of deductions for earnings.

Partner works full-time. I did read the long thread, and a few others, in anticipation of our managed migration date but was hoping UC/DWP might be wiser by now - apparently not!

tomtom256

Is he a company director, as it's odd that his employer doesn't provide one?

michaels

Spoonie_Turtle said:

First thing to establish, does your partner work?  Because if not then paying into a SIPP is irrelevant in terms of deductions for earnings.

If they do, then yes by law pension contributions should be taken into account.  But people have a lot of trouble getting UC to do it.  There's a very long thread here https://forums.moneysavingexpert.com/discussion/6001734/universal-credit-and-private-pension-contributions
And no doubt others if you do a search for 'UC pension'.

Hi  Not sure of the relevance of this? (OP sorry for hijacking your thread)

dul50n

We were migrated 30th January and it was quickly obvious that the system is fundamentally flawed in favour, naturally, of the DWP

If you are self-employed and make SIPP contributions you can report them and they are treated as an expense for deduction from self-employed income, but if you're employed you can go whistle

So far I've asked for mandatory reconsideration of four payment statements both through the journal and via paper CRMR1 forms lodged with the local job centre including evidence of pension contributions and heard nothing

I've lodged a written complaint citing the legislation that clearly states that ALL relievable pension contributions should be deducted from household earnings

The reply I received said that they didn't have clear guidance and they were trying to suggest that by making pension contributions I was depriving myself of income, that it was being referred to the Universal Credit policy team and that they were unable to provide time scales for decisions

This displays a staggering misunderstanding of the concept of income deprivation and a complete disregard for statutory legislation

They then went on to hope that my complaint was now resolved.....

Err, no, not at all, escalate it to the DWP Complaints Team please

I'm still waiting to hear from them and if it goes on much longer I'll be approaching my local MP to go to the Parliamentary Ombudsman

I just need a Decision Maker (what a job title) to now either make the right decision or make the wrong decision so that I can take them to a tribunal

Basically, the online UC reporting system is programmed incorrectly and isn't fit for purpose

Don't give up, keep asking for mandatory reconsideration, don't let them get away with the stonewalling techniques they employ

Spoonie_Turtle

michaels said:

Spoonie_Turtle said:

First thing to establish, does your partner work?  Because if not then paying into a SIPP is irrelevant in terms of deductions for earnings.

If they do, then yes by law pension contributions should be taken into account.  But people have a lot of trouble getting UC to do it.  There's a very long thread here https://forums.moneysavingexpert.com/discussion/6001734/universal-credit-and-private-pension-contributions
And no doubt others if you do a search for 'UC pension'.

Hi  Not sure of the relevance of this? (OP sorry for hijacking your thread)

Because it's only relevant to the amount of UC someone gets if there are earnings from which to deduct the pension contributions - i.e. less deduction for earnings means more UC. 

If someone isn't earning then paying into a pension won't affect the amount of UC they're entitled to.

kaMelo

On a wider point to the OP, why does your wife not take up the occupational pension provided by their employer? She is giving away free money by not doing so.

huckster

DWP does not have a standard UC process for dealing with these separate pension contributions that people want relief for.  Presumably because the number of people claiming UC and in a position to make these separate pension contributions is quite small. Therefore any IT budget for system improvement and ongoing maintenance is prioritised to helping the majority of claimants.

The process to achieve relief for the pensions is to raise mandatory reconsideration after each UC statement is issued.  And if you are unhappy with this process and the time it takes, then raise a complaint.