Deducting SIPP contributions from earned income for UC

trebor424

Has anyone actually succeeded in getting the DWP to deduct their SIPP contributions from their earned income, for the purpose of working out their entitlement to UC?

A case manager at UC has told us that only pension contributions that are taken directly from wages can be deducted. It would seem that the UC system was set up purely to depend on RTI from HMRC. This seems most unfair and I don't understand why the DWP won't accept the manual reporting of SIPP contributions.

Any guidance/thoughts from forum members most welcome.

Largs

Not sure if this will be of help.

https://www.thisismoney.co.uk/money/pensions/article-13526097/Im-Universal-Credit-private-pension-payments-taken-account-STEVE-WEBB-replies.html

Spoonie_Turtle

There are threads about this on here, sorry brain too memory melty to find them.  Short answer: yes people have succeeded but with difficulty.

michaels

I have so far had one response (after about 4 weeks and 4 messages in the journal) about this saying they use the Inland Revenue numbers and have since sent two more messages explaining (again) what they should be doing and no response yet.

Largs

It seems to be a very misunderstood area and something I will keep in mind if ever I am working part time.  I would certainly pay most of my wages into my stakeholder scheme in order to get benefits.  The article explains it is to encourage people to save for retirement, so if the goverment allow it, I for one will be taking full advantage.

michaels

Seems really odd, the law is very clear so why would benefit processing employees be deliberately trying to override the law - what is in it for them?  Are they paid extra if they successfully deny eligible claims?

Largs

It seems to be something that was a tax credits rule that also applies to universal credit. Perhaps they are not used to it as it didn't apply to the benefits that UC replaces?

michaels

Less likely to apply to new UC claims as people need money to live off and having money (ie savings) would normally disqualify UC, only works for me due to transitional protection a coming from WTC/CTC

michaels

trebor424 said:

Has anyone actually succeeded in getting the DWP to deduct their SIPP contributions from their earned income, for the purpose of working out their entitlement to UC?

A case manager at UC has told us that only pension contributions that are taken directly from wages can be deducted. It would seem that the UC system was set up purely to depend on RTI from HMRC. This seems most unfair and I don't understand why the DWP won't accept the manual reporting of SIPP contributions.

Any guidance/thoughts from forum members most welcome.

I am still in process, initial response saying HMRC tell us all the info we need took 4 weeks, have messaged again 10 days ago, no response yet.

Suggestion is eventually you can go to tribunal but it seems like this is not an option until they have done a mandatory reconsideration but it seems if they refuse to do an MR then what options are available?

NewBe

I'm going through something similar. Migrated to UC in April 2024.

https://forums.moneysavingexpert.com/discussion/6534213/universal-credit-wont-deduct-sipp-contributions/

I have a workplace pension so my net income is correctly reported by HMRC to UC. My wife pays monthly contributions into a SIPP (no occupational pension).

I left multiple messages on my journal explaining what a SIPP is, including links to UC legislation about pension contributions. Each response from different agents was 'We get income data from RTI' and 'Contact your workplace to report the correct wages'.

After a month of getting nowhere on the journal, I decided to call the helpline and request a Mandatory Reconsideration. The next day, a message was left on my journal saying a request has been submitted to a Decision Maker, but the timescale for a response is unknown. This was over a month ago. Having looked around the internet, it could be months or not at all.

Due to the eldest child leaving sixth form and dropping off the claim, we won't get anything without the SIPP deductions from September, so will probably just let it close to avoid the hassle.

Floxxie

I am having the same problem. I have been told to speak to my local politician.