Universal Credit and Private Pension Pots

norm27

Just to say that DWP have today awarded my brother in law Universal Credit which by implication confirms that he will not have to draw down any pension. So thanks once gain for the replies, panic over. Until the next one. Cheers.

BobIzYaUncle

I find it rather disturbing and upsetting that earnings from pension is deducted £1 for £1 even when awarded LCWRA yet you can go to work whilst claiming UC and not be stopped anything until you reach a certain threshold! How is that fair!

Grumpy_chap

BobIzYaUncle said:

earnings from pension 

income from pension is not earnings.

Robbie64

Yes, as above, for UC, pension income is classed as unearned income and is therefore deducted £ for £.

BobIzYaUncle

Robbie64 said:

Yes, as above, for UC, pension income is classed as unearned income and is therefore deducted £ for £.

I understand this but although the pension has not been earned in that particular month, it has at some point been earned to an extent as it has been paid into from earning from work!

Spoonie_Turtle

BobIzYaUncle said:

Robbie64 said:

Yes, as above, for UC, pension income is classed as unearned income and is therefore deducted £ for £.

I understand this but although the pension has not been earned in that particular month, it has at some point been earned to an extent as it has been paid into from earning from work!

They treat Carers Allowance (which I'm sure nobody could argue is not earned - if someone does the minimum caring to qualify it still only works out at £2.38/hr) and contributory benefits the same way. 

It's just unfortunate they have those terms as the distinction, but all it really means is how they treat the income, whether a deduction is made for it in full or if they taper the deduction (like they do for employed and self-employed wages).

huckster

As with all questions about benefit system unfairness, it is always best to contact your local MP in writing. If MP's receive enough complaints, perhaps this will lead to changes. I doubt it, as these deductions have been part of the system for a long time. And there is pressure to reduce benefits and not increase them.

FrugalintheNortheast

I have just seen this so sorry if my comment may be no longer relevant, hopefully someone will find it useful?

Both AGE UK and Citizens Advice Bureau have very good factsheets on this, there is also some useful facts in the uk gov own website which is crystal clear

"If you (or your partner) are under the qualifying age for Pension Credit

If you (or your partner) are under the qualifying age for Pension Credit, and you do not take any money from your pension pot, then it will not be taken into account when your benefit entitlement is worked out.

If you or your partner do take money from your pension pot, it will be treated as either income or capital, depending on, for example, how regularly you withdraw it.

It is your responsibility to tell the Department for Work and Pensions (DWP) – and your local council where appropriate – if you or your partner take any money from your pension pot."

your brother in law has the pension pot but whether he has taken any money from it already is what maybe relevant to what decision the DWP makes. He may still be eligible for UC depending on how much he is getting from the pension pt but considering his circumstances its likely he would be entitled.

The qualifying age for pension credit depends on the claimants age, I think it would be 67 for your brother in law but not sure.