Overpaying into pension and universal credit

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81862089#Comment_81862089

Actually, I think there is a clear rationale as to why Work Coaches / DM's etc representing DWP / Government at the contact points for UC are not permitted to comment on possible proposed actions. It is, basically, that DMs are not there to act as benefits advisors nor to advise how an individual might proceed to maximise their entitlement to benefits. The role of a Work Coach / DM etc is simply to enforce the rules as they are written based upon facts.

There would also be a potentially unclear liability if an individual asked "if I do this, that and the other, will it affect my benefits" and the DM says "no". The individual then does this, that and the other but in a technically different way than the DM understood from the original question such that the individual then receive less UC. The DM then confirms that, based on what was actually done, the UC is reduced. Would the claimant have a potential claim against the DM previously saying that the claimant could do this, that and the other?

Altior

https://forums.moneysavingexpert.com/discussion/comment/81862125#Comment_81862125

I appreciate that, but it's no different to HMRC. Tax law can and does come down to interpretation at times, but there is still extensive legislation and guides on what is is allowable (and disallowable). You can get support from HMRC (notwithstanding you can be guided incorrectly, but that is beside the point!).

It's not possible to account for every single scenario, but ones such as the OPs will be common enough to warrant a clear definition, in my view. How DB pension contributions (and AVCs) are treated in combination with UC, and is there a limit to them specific to UC.

It is relevant to the OPs thread, but does risk a derailment, so those are my final thoughts :)

TruthorConsequences

I think it’s the very fact that it seems almost too good to be true that is worrying me. So benefitting now by increased universal credit whilst also paying additional funds into a pension. I absolutely don’t want to break any rules or try and circumnavigate the system in anyway.

I understand that this could be perceived in this way in a salary sacrifice scenario (however unlikely) and I’ll have to take this into consideration before I make a decision but I am very grateful to you all for taking the time to explain so fully and reassure me.

As others have identified, it wouldn’t be enormous amounts. It would be an average of about £250 a month extra out of my pay depending on the duration of the contract and the amount of additional pension I would be looking to buy. I’m actual fact this is a lot of money to me so I need to think carefully but I’m very glad I have asked as this has really helped me with looking into this further and asking more questions about my pension!