Disregarded Capital and Universal Credit

CosmicDaisy

Hoping someone can clarify as I think I'm correct. I'm having my Universal Credit review and need to wait for a decision maker to make a decision. I have a pension pot with a small amount in it just around £3.000 but am too young to cash or draw it anyway. My understanding is that pensions are not regarded as capital with means tested benefits unless you are actually cashing or drawing from them. Is this correct? 

The reviewer is new and thinks the guidelines are unclear so has forwarded my case to a decision maker but I always thought the disregard rule with this was clear? They already knew about this pension before and never counted it as capital before. My understanding was pensions are only counted as capital with means tested benefits if you are actually taking them out as income?

Brie

I agree with your understanding and should anyone decide that you should be able to access this money then point them in the direction of pension legislation which states it's not possible until you are at least 55.

HillStreetBlues

This is the joke with some UC reviews, the person / people doing them are badly trained if trained at all.
You are totally correct money in a pension pot is ignored, it's so basic everyone dealing with UC should know.

CosmicDaisy

Thank you so much for clarifying. The advisor just keeps saying that my pension was a very specific account and their guidelines were not clear. It's just an online personal pension with Moneybox. All I do is pay a couple of pounds in a week to keep it ticking over. 

HillStreetBlues

Point them in the direction of the ADM giude H2046
https://assets.publishing.service.gov.uk/media/672b76a2094e4e60c466d22a/admh2.pdf

Occupational and personal pensions
The law
H2046 The value of any right to receive a pension under
1. an occupational or personal pension scheme or
2. any other registered pension scheme
is disregarded indefnitely
.
1 Pension Schemes Act 1993, s 1; Finance Act 2004, s 153; 2 UC R.

CosmicDaisy

To be fair I think the advisor was struggling enough with their own guidelines, I don't want to confuse them even more 😆 

Slonvinton

HillStreetBlues said:

Point them in the direction of the ADM giude H2046
https://assets.publishing.service.gov.uk/media/672b76a2094e4e60c466d22a/admh2.pdf

Occupational and personal pensions
The law
H2046 The value of any right to receive a pension under
1. an occupational or personal pension scheme or
2. any other registered pension scheme
is disregarded indefnitely
.
1 Pension Schemes Act 1993, s 1; Finance Act 2004, s 153; 2 UC R.

Thank you for this!
I was just having heart attack as my pension pot became to take a lump sum from available when I turned 55 (I didnt). The complication of trying to work out what it was actually worth if it needed to be declared was something I really didnt want to have to start digging into (its not like you can just take it all, you lose lots if you take a lump sum and I dont think you cant take it all anyway- to be honest Ive not really looked into it as had enough on my plate without worrying about that- so Ive left it ticking over).

superM

The savings limit is 6k.  Pension pot is 3k. What difference does that make? 

Do you have 6k or more savings? 

Shadyocuk

If you are below SPA then pensions that are not being paid/withdrawn from are not relevant