Universal Credit and Ill health retirement

[Fingerscrossed11]

Hello,

If anyone could shed some light on all of this or has advice I’d be very thankful.

Ive been off work on sick leave for quite a few years now. Most of these being on zero pay as after a year of being off pay goes to zero. I claimed universal credit when this happened and I also receive limited capability for work and work related activities and am now registered disabled due to health conditions. should also say I am a single mum.

After a long process I’ve been offered early Ill health retirement. I’m 42. I am also due years of holidays I’ve not taken back from my work which I think might come to £4000 or thereabouts.

On top of that there is my pension which I’ll start receiving. I’ve been offered to take a lump sum and reduced pension.

if I take the maximum lump sum I’m pretty sure my universal credit would stop but I would then be living solely off my pension lump sum with one earner being me in the house. This wouldn’t last long at all and would then affect my pension going forward as this would be reduced.

if I took less lump sum and got monthly pension payments how much could I get without universal credit being reduced.

I really have no idea about all of this.

i am wanting to move house as the one I’m in is giving me nothing but problems but can’t afford to buy amd the rent now for property is unbelievable so in a position where don’t know what to do really.

Any advice would be amazing.

thank you for reading x

How much would you get for your pension? Do you have anything tying you to the area? I’m wondering if you could take the lump sum and buy somewhere cheap (prices vary wildly. If impossible I wouldn’t take lump but move to somewhere cheaper to rent.

At least your PIP won’t be affected

Not sure about the UC issue, sorry. However, it usually works out best to take the smaller lump sum and bigger monthly pension, especially as you’re so young & likely to receive a lot of monthly payments before you die.

There are a few online calculators you can use which would inform you much better

Any private pension payments would come off your total UC pound for pound. Private pensions are treated differently to earnings, there is no work allowance and no taper rate, they are just deducted in full so if you get £500 in private pension a month your total Uc is reduced by £500.
Any savings over 6k and 16k will reduce your UC by about £17 a month for each 1k over 6k.
Any holiday pay which is paid would be treated as earnings so you would still get your work allowance applied. However depending on the mount and how it is paid it could cancel out any Uc for a couple of months- depends on the amount.

It won’t just cancel it for a couple of months. It will be until you get under £16000 in savings again. I have cancer and recently took my pension and I’ve fiddled about with assessments and I’m not entitled to anything which is fair enough. However the lump sum won’t last long and it seems a shame to use it on rent but thems the rules.

Thank you everyone for your comments.
I received £9,000 from my work for 4 weeks in lieu and holiday pay which I was owed which was over years. This month I received no universal credit. I’ve had to pay hefty dentist charges amongst other things and I don’t know where I stand going forward. This wasn’t a regular income as I haven’t received any for years and now I’m not really sure what the situation is. I receive the inability to work payment in universal credit also and I’ve been signed off work due to incapacity to work hence the back holiday pay etc. I didn’t know how all this worked when I had to apply and now I’m even more confused. Could anyone give me some advice please? Thank you

Well holiday pay is treated as earnings so it will be deducted at 55p in the pound. There is an excess earnings rule so you can’t just get £9k spend to be under the £6k savings and get full UC the next month. Some of the earnings will be carried forward and applied to the next
Few months ( can not remember how much though)

Well holiday pay is treated as earnings so it will be deducted at 55p in the pound. There is an excess earnings rule so you can’t just get £9k spend to be under the £6k savings and get full UC the next month. Some of the earnings will be carried forward and applied to the next
Few months ( can not remember how much though)

Had a quick Google surplus earnings are 2.5k over the amount it’d take to reduce your earnings to zero. I have fallen foul of this previously. My job was annulalised part time but consistently work full time hours. Every three months they pay the difference so my wages go £1500, £1500, £4000. I only get a few hundred a month so it’s enough that I got zero then some carried forward. It wasn’t ideal so I changed jobs.

So surplus earnings are 2.5k over the amount it’d take to reduce your earnings to zero. I have fallen foul of this previously. My job was annulalised part time but consistently work full time hours. Every three months they pay the difference so my wages go £1500, £1500, £4000. I only get a few hundred a month so it’s enough that I got zero then some carried forward. It wasn’t ideal so I changed jobs.

Of course you won’t get anything if that much has landed in your account. It will even out eventually.

@Sosorryliver
my pension I think would be between £1000-£1500 a month.
i hadn’t received any benefits until I got no income from work as I was off unfit for work for so long and I honestly have no idea how it all works. My kids go to school and nursery where I stay just now. My family also live walking distance away so that does tie me here. I’ve also had some serious health problems which seem okay now but I had a stroke and urgent abdominal surgery which makes me feel wary to move further away. Maybe me being paranoid but to stay close to family makes me feel better x