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Small Pots Pension effect on UC

saintscouple · 2025-08-04 08:57:17

Hello, I would just like to clarify something. In the near future i will be drawing from my pension under small pots rule, aprox £7k I understand this is treated as capital / savings in UC, and also anything over £6k will have £4.35 deducted for every £250 or part of over the £6k My question is, in the same assessment…

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HillStreetBlues Posts: 6,122 Forumite

5 August at 6:31PM edited 5 August at 6:32PM

saintscouple said:

Yes, I am not taking a regular income from the pension, just this lump sum..
And yes, it is to clear some debts and for a special purchase. However that may not be made in the same AP as receiving the funds.

Just make sure you spend your capital during the AP the pension is paid and keep your income, as the income won't become capital until the next AP.

Let's Be Careful Out There
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