One off Pension lump sum when on UC

rangout

I'm in a situation where I need to replace some of my furniture (all second hand and seen better days)

Am I right in thinking if I take a lump sum of less than £3000, it's capital and below the threshold so wouldn't affect my UC and housing benefits? Or do I need to declare it anyway since pensions are deducted £1 for every £1 in benefits?

poppy12345

rangout said:

I'm in a situation where I need to replace some of my furniture (all second hand and seen better days)

Am I right in thinking if I take a lump sum of less than £3000, it's capital and below the threshold so wouldn't affect my UC and housing benefits? Or do I need to declare it anyway since pensions are deducted £1 for every £1 in benefits?

A lump sum  from your pension is treated as capital. If your total capital is less than £6,000 after withdrawing then it will not affect your UC. 

As it's a pension drawdown I'd still advise you to report this. 

rangout

Thanks. I was looking at other forums and was getting mixed messages