WTC to UC Personal Pension Deductions Query

gandalf24

We received our first UC payment March 2024, migration from WTC and it was £32  a month. We previously got £35 per week working tax credit.

I got the severe disability element of WTC

Working Couple, total earnings £2492 and declared £26k savings.

Payments from March 24 averaging £32 per month

UC August to September 2024  Payment  now says zero. Slight increase in our wages was £2413 now £2492

We get the transitional protection payment.

Thought the transitional protection payment was supposed to make the payments the same as what we got on WTC. for a year, and then it would stop.

My wife pays in total  using HMRC tax calculation £1588 per year to a work and also a personal pension should I contact HMRC  or UC to notify them and  would this make any difference to my UC payments .
Any advice  would be most grateful

peteuk

Transition protection - is applied before your deductions (If its on) if you dont have a TP line then raise this on your journal.

Its length varies depening on what its applied to.  So you will have a years disregard of your £26K capital.  However you will still get the maximum deductions for the section between £6K and £16K. (£4.35 for each £250 or part of there in) 

Your deductions will also include 55p for every pound you earn. So the extra pay (£79) means £43.45 further reduction, which is he zeroing of your UC.

If your wife’s pension is taken at source eg a works pension then it will already be taken into account.  Personal pensions contributaions are more difficult for UC to take into account and there has been a few threads on hear on how easy/hard it is to get it applied to your UC.

Spoonie_Turtle

peteuk said:

Personal pensions contributaions are more difficult for UC to take into account and there has been a few threads on hear on how easy/hard it is to get it applied to your UC.

OP the reality is it can be really difficult because for some reason they just don't apply the law correctly, BUT if you wish to get what you're entitled to you can fight for it and you will get there, eventually.  Edit: assuming the personal pension hasn't been taken into account for UC and that it would give an award still.