Universal Credit and Pension Contributions

[HitMePlease34]

Hello, does anyone have any guidance on making a direct debit payment to an old workplace pension monthly and if this is against any rules? It would be picked up in the yearly audit. Thanks in advance

What's a yearly audit?

When you send them all you bank statements and they see what you have spent, where, when etc. They check 4 months of statements yearly. Can be every 2 years, can be sooner.

I'd be very surprised if you can contribute to an old workplace pension if you are no longer employed at the workplace.
You could contribute up to £2880 per year in a SIPP and invest that money in a tracker ETF. The government gives you a 25% top on your contributions. There are no charges for a SIPP with Hargreaves Lansdowne. Other providers are available.

Would that have any impact on the UC? I want to pay £100 a month but realise it has tax implications which may have a spin off?

Thank you for your advice!

Are you currently employed and if so could you contribute more to your current workplace pension?

Your net salary is what is reported for UC, so they should treat a different private pension (e.g SIPP or contributions to a previous workplace’s pension) the same, however I think you’d have to ask them how you can evidence it. Would be far easier to just contribute more to your current workplace’s pension and have it all reported for you.

Sorry OP I’ve misread/misunderstood your post, and I think I answered an entirely different question! In terms of it being allowed then yes, it is and would not be considered deliberate deprivation of assets, or be considered savings.

You would have to check if your old workplace will allow it and what the benefit would be. You may be better off just opening a SIPP, as pp says.

You can with many of the large auto enrollment providers such as Nest, People's pension etc.

My old work place was a corporate pension firm and has part of the pension I can contribute too (one of the big ones) via a direct debit.

My new role is in a school so the pension is a portion of your wages for a piece of the pie scheme so I can't add more to it for any benefit.

Sounds like you’re in LGPS now? If so you can pay in more, and it may even be better than your old company’s workplace pension https://www.lgpsmember.org/your-pension/paying-in/paying-more/

Plus the extra benefit from my first post, that you won’t have to faff around with evidencing the pension contributions so that it has the correct impact on your UC entitlement.

@HitMePlease34 never ever had universal credit check my bank statements.....😦

I started in 2022, had a review in 2024 and expect one in 2026. They are yearly or if something happens to trigger it. They are random.

You then provide and justify everything that goes in and out, which is fine and part of the deal. Which is why I don't want to make any mistakes.

They are at different intervals for different people. I’ve had one in six years.

Me neither. I didn’t even know this was a thing. Been getting it since 2023 and never had a review.

Also never had a review and been having UC top ups since 2020.

That makes sense, thank you!

I spoke to UC today and I can pay into a private pension and they will increase the UC amount to show as if it was taken at source so would be increased.

If you work in a school, it's likely the LGPS scheme, and yes you can pay more. Paying more is either APC or AVCs.

APC builds up additional guaranteed income

APC builds up an invested pot, a bit like a DC scheme or SIPP, but as they calculate the 25% against the whole pension, many can take the whole amount tax free. This is a specific difference between the LGPS and most other public sector schemes.

Would recommend this webinar by pengage specialists for an overview of the scheme and how you can pay in more