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One off pension drawdown effect on UC LCWRA and Council Tax
- MuttonJeff
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2 years 3 months ago #278515 by MuttonJeff
One off pension drawdown effect on UC LCWRA and Council Tax was created by MuttonJeff
Hello
I've had £3k emergency vet bills which I've had to put on cards, plus I've got my own private health care bills to pay thanks to 4 year NHS waiting lists. I will have to take a one off pension drawdown to pay it off as my savings have been exhausted so will not take my income over £6K in fact will go straight out to clear the cards. Am I right in thinking one off pension drawdown (not tax free lump sum but drawdown from a dwindling SIPP balance) is treaded as a capital income not as actual income, and that so as long as under £6K capital savings anywhere my UC & LCWRA won't be cancelled?
Also I had my council tax reduced to zero, my 2023/24 bill shows "disabled band" (I got PIP enhanced DL from Oct 2022 and also LWCRA ) My council website has no information whatsoever on disabled discount other than a mention of severely mentally impaired, I just filled in my data LCWRA and said PIP applied for, and lack of savings down to £500 at the time and was awarded. How will I know what level of savings kept as emergency reserve will cancel this reduction? At 60 I've already used 2/3rds of my private pension and my inheritance and only recently claimed benefits but I have to pay the vets bill and my pension pot is all I have left.
Thank You
I've had £3k emergency vet bills which I've had to put on cards, plus I've got my own private health care bills to pay thanks to 4 year NHS waiting lists. I will have to take a one off pension drawdown to pay it off as my savings have been exhausted so will not take my income over £6K in fact will go straight out to clear the cards. Am I right in thinking one off pension drawdown (not tax free lump sum but drawdown from a dwindling SIPP balance) is treaded as a capital income not as actual income, and that so as long as under £6K capital savings anywhere my UC & LCWRA won't be cancelled?
Also I had my council tax reduced to zero, my 2023/24 bill shows "disabled band" (I got PIP enhanced DL from Oct 2022 and also LWCRA ) My council website has no information whatsoever on disabled discount other than a mention of severely mentally impaired, I just filled in my data LCWRA and said PIP applied for, and lack of savings down to £500 at the time and was awarded. How will I know what level of savings kept as emergency reserve will cancel this reduction? At 60 I've already used 2/3rds of my private pension and my inheritance and only recently claimed benefits but I have to pay the vets bill and my pension pot is all I have left.
Thank You
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- Gordon
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2 years 3 months ago #278539 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic One off pension drawdown effect on UC LCWRA and Council Tax
MuttonJeff
A single one-off payment will not affect your ESA and providing your total assets and savings do not exceed £6000 then your UC should not be a problem either.
Consider asking your pension provider to pay the debts directly rather than having the money come to you and then you pay them.
Gordon
A single one-off payment will not affect your ESA and providing your total assets and savings do not exceed £6000 then your UC should not be a problem either.
Consider asking your pension provider to pay the debts directly rather than having the money come to you and then you pay them.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- ANGELA
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2 years 3 months ago #278589 by ANGELA
Replied by ANGELA on topic One off pension drawdown effect on UC LCWRA and Council Tax
Not a response to your question, but the PDSA is cheaper than a vet. Look to see re: eligibility and if there is one near you. This may be useful in the future.
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