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UC & Pension pot.
- JJ
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3 weeks 6 days ago #297197 by JJ
UC & Pension pot. was created by JJ
Hi
My partner reached state pension age in 2022.
He claims full state pension, we are unable to claim pension credit because we are a mixed age couple. (I don't reach pension age until 2027)
We were told to claim universal credit instead, but the calculation came up as a £0 reward, as they took my small occupational pension plus carers allowance into account. So we lost all our housing benefit.
Recently, however, it was brought to our attention that as my partner's review of PIP increased his daily living award from standard to enhanced, then an extra element was brought in which means we are able to have a (very)small amount of UC towards housing costs.
This would have remained unclaimed if it was not for the local financial inclusion team who are linked with the Housing Association. They came across it via another query from myself.
Firstly I thought it may be useful to other mixed aged couples to know this. I had no idea that a change in PIP rate could have a positive impact in UC entitlement. Neither did the UC people know this, so we had a battle on our hands.
But also I was wondering if a pension pot which is deferred from my partner's previous occupation, would affect anything for us ?
I have been told by the financial advisor that it does not count as savings as such. But I am wondering if my partner would be expected to be drawing down a regular income or if this would be calculated as a notional income which could off-set the UC ?
I think I am of the impression that we both would have had to have reached state pension age for this to apply. As the UC claim is a joint mixed age one.
Also if he were to take any drawdown from the pension, then am I right in thinking that providing this is below a certain amount then this will not have any effect on the UC ?
Thank you for your help.
My partner reached state pension age in 2022.
He claims full state pension, we are unable to claim pension credit because we are a mixed age couple. (I don't reach pension age until 2027)
We were told to claim universal credit instead, but the calculation came up as a £0 reward, as they took my small occupational pension plus carers allowance into account. So we lost all our housing benefit.
Recently, however, it was brought to our attention that as my partner's review of PIP increased his daily living award from standard to enhanced, then an extra element was brought in which means we are able to have a (very)small amount of UC towards housing costs.
This would have remained unclaimed if it was not for the local financial inclusion team who are linked with the Housing Association. They came across it via another query from myself.
Firstly I thought it may be useful to other mixed aged couples to know this. I had no idea that a change in PIP rate could have a positive impact in UC entitlement. Neither did the UC people know this, so we had a battle on our hands.
But also I was wondering if a pension pot which is deferred from my partner's previous occupation, would affect anything for us ?
I have been told by the financial advisor that it does not count as savings as such. But I am wondering if my partner would be expected to be drawing down a regular income or if this would be calculated as a notional income which could off-set the UC ?
I think I am of the impression that we both would have had to have reached state pension age for this to apply. As the UC claim is a joint mixed age one.
Also if he were to take any drawdown from the pension, then am I right in thinking that providing this is below a certain amount then this will not have any effect on the UC ?
Thank you for your help.
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3 weeks 6 days ago #297203 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic UC & Pension pot.
Hi JJ,
Firstly I need to say before members become overly excited is that there is no extra element because of an increase in PIP. What PIP can do as far as UC is concerned is give exemption from Non Dependent Deductions and/or the LHA shared accommodation rate. So I really need more information from you as to how as a mixed age couple you managed to get your UC increased. That would be helpful.
As far as pensions are concerned you are correct that the rules are different for mixed aged couples on UC and pensioner couples on pension credit. So a deferred pension is disregarded for UC but not for Pension Credit.
But any income you and your partner receive from a pension is deducted £ for £ from your UC. There is no allowance for pension income as there is with earned income ( work allowance ).
David
Firstly I need to say before members become overly excited is that there is no extra element because of an increase in PIP. What PIP can do as far as UC is concerned is give exemption from Non Dependent Deductions and/or the LHA shared accommodation rate. So I really need more information from you as to how as a mixed age couple you managed to get your UC increased. That would be helpful.
As far as pensions are concerned you are correct that the rules are different for mixed aged couples on UC and pensioner couples on pension credit. So a deferred pension is disregarded for UC but not for Pension Credit.
But any income you and your partner receive from a pension is deducted £ for £ from your UC. There is no allowance for pension income as there is with earned income ( work allowance ).
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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3 weeks 6 days ago #297207 by JJ
Replied by JJ on topic UC & Pension pot.
Hi David
Thank you very much for your reply.
The reason why we managed to get the UC increased from a £0 award is because the award of the enhanced rate of the daily living element if PIP meant that the 'Limited Capability for work & work related activity' (LCWRA) could be added to the claim. It is this element that increased the award.
This is found in UC Regulations Schedule 9, Paragraph 5.
Could I also check regarding the pension pot that any withdrawn amount (not regular income) will not effect the UC as long as it is below the allowed thresholds.
Thank you.
Thank you very much for your reply.
The reason why we managed to get the UC increased from a £0 award is because the award of the enhanced rate of the daily living element if PIP meant that the 'Limited Capability for work & work related activity' (LCWRA) could be added to the claim. It is this element that increased the award.
This is found in UC Regulations Schedule 9, Paragraph 5.
Could I also check regarding the pension pot that any withdrawn amount (not regular income) will not effect the UC as long as it is below the allowed thresholds.
Thank you.
- David
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3 weeks 6 days ago #297219 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic UC & Pension pot.
Hi JJ,
Thanks for your explanation. Here is the UC Reg that your quoted -
"The claimant has reached the qualifying age for state pension credit and is entitled to attendance allowance, the care component of disability living allowance at the highest rate or the daily living component of personal independence payment at the enhanced rate"
As you can see the increase in UC only applies to someone over State Retirement Pension age. But it is definitely something worth remembering. It means you are given the LCWRA element without having a WCA. If you had had a WCA previously you would have received the LCWRA element anyway. You are in what is termed a Mixed Age Couple and the Benefits rules regarding this are complex.
As far as capital from a personal/company pension is concerned it is disregarded upto the usual threshold of £6000.
David
Thanks for your explanation. Here is the UC Reg that your quoted -
"The claimant has reached the qualifying age for state pension credit and is entitled to attendance allowance, the care component of disability living allowance at the highest rate or the daily living component of personal independence payment at the enhanced rate"
As you can see the increase in UC only applies to someone over State Retirement Pension age. But it is definitely something worth remembering. It means you are given the LCWRA element without having a WCA. If you had had a WCA previously you would have received the LCWRA element anyway. You are in what is termed a Mixed Age Couple and the Benefits rules regarding this are complex.
As far as capital from a personal/company pension is concerned it is disregarded upto the usual threshold of £6000.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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3 weeks 6 days ago #297236 by JJ
Replied by JJ on topic UC & Pension pot.
Hi David
Thank you for this.
The benefit rules for mixed aged couples certainly are complex. The UC told us 3 times that we were incorrect, as they kept saying that PIP had no impact. But for our case, in particular, it did, as we have discussed.
It seems that the link between the award of enhanced rate daily living PIP & the UC claim are remote from eachother. It is not automatic. So any entitlement for someone of pension age, who holds this PIP rate & who may need to claim UC, could go unnoticed & remain unclaimed.
Thank you again.
Thank you for this.
The benefit rules for mixed aged couples certainly are complex. The UC told us 3 times that we were incorrect, as they kept saying that PIP had no impact. But for our case, in particular, it did, as we have discussed.
It seems that the link between the award of enhanced rate daily living PIP & the UC claim are remote from eachother. It is not automatic. So any entitlement for someone of pension age, who holds this PIP rate & who may need to claim UC, could go unnoticed & remain unclaimed.
Thank you again.
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