Advice needed - will using pension money to pay off mortgage affect benefits

[LorKell]

Hi a bit of a complicated one.

My husband was made redundant in July and got a redundancy package that will run out in February. We have gone under the threshold now so can claim universal credit although only entitled to £250 a month as I work part time.
He has worked relentlessly to get another job but so far has had no luck. We will also be entitled to a small discount in council tax and water rates.

While my husband was working over the years he paid a fair amount into his pension fund and as he is 55 can withdraw some tax free that would pay the mortgage for a year.

The trouble is if he withdraws an amount tax free it would have to come in to our bank account for a period of time before it goes straight back out to the bank to pay the mortgage.

This means for a short period we will go back over the threshold for universal credit and discounts in bills so this will be withdrawn.

Is there any way around this ?

We are not trying to fiddle the system. We have worked all our lives and have never ever claimed benefits before. We are just trying to find a way of keeping our home.

My husband is absolutely desperate to work but he is not having any luck. We think that possibly companies are discriminating against his age as he is nearly 56 even though this is not allowed.

Any advice gratefully received.

Sorry, I see you mention free school meals which suggests your DC are still relatively young? I’d been thinking they were perhaps older as your DH is 56. If you still have a houseful then a lodger probably not possible.

Can you work more? Do you work PT or FT?

I’ve had lodgers & student lodgers over the years as it’s a good way to supplement your household income - but although it’s tax free up to approximately £7k you will have to declare this income to both local council tax benefit & UC and they will adjust income related benefits accordingly but it maybe that it is more beneficial to have a lodger than benefits and of course then drawing pension won’t be an issue

I put both my D.C. into one bedroom and they shared the bigger bedroom & I rented out the smaller bedroom for a reasonable rent. I’ve got a min-fri lodger atm, have had students through a local college when D.C. where younger as it was more appropriate I felt.