On the small pot claim form it asks: ‘Are you receiving means-tested benefits?’ What does this mean?

 

Claiming your pension savings may have implications on your entitlement to means-tested benefits. There are rules around how your small pot lump sum will be treated in the calculation of your entitlement to the following income-related benefits:

 

  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-based)
  • Housing Benefit
  • Pension Credit
  • Income Support
  • Universal Credit

 

If you’re claiming any of the above benefits, you may wish to read The Department for Work & Pensions (DWP) factsheet for some general information on this. You can find their factsheets at www.gov.uk/government/publications/pension-flexibilities-and-dwp-benefits.

 

If you’re judged to have deliberately spent or given away your pension pot to receive or increase benefits, the DWP or your local council may re-assess your eligibility and treat you as still having the money. If you’re able to take an income and have chosen not to do so, some or all of the income you could have taken may be taken into account.

 

 

 

 

 

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It’s your responsibility to tell DWP (and your local council where appropriate) if you or your partner take any money from your pension savings. If you’re concerned about this you can contact The Money Advice Service, The Citizens Advice Bureau or Pension Wise for more information.

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