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.