My personal pension recently matured and I decided to withdraw my tax free sum and then a further sum that was taxed. Fine. Just gone onto my online banking to find that one week’s CA has been deducted because of that 2nd taxable amount?! I was assured by a DWP phone line operator that any withdrawals would be disregarded, as savings are not taken into account with the CA payment threshold, only wages earned, so why have the DWP withheld a payment? Can’t ring them until tomorrow, and have a big moan yet again, but just wanted to be sure of my facts, savings are not earnings so are discounted by the DWP in relation to my CA payments?
Hi Karen.
Interesting.
Private pensions … lump sums and / or monthly payments … do NOT affect Carers Allowance !
As a deduction , are any other benefits being claimed … especially income related ones ?
Working … anywhere near to the weekly limit of £ 123 net per week ?
If not , I’m stumped … look forward to receiving the DWP’s explanation for their course of action.
Thanks Chris, I do have a part time job but stay within the weekly limit (recently changed from a monthly limit, but that is a whole other story that led me writing to my local MP), keep a close eye on my hours and no other income, so can only think this is to do with that savings payment? The DWP have led me a very merry dance over the last 6 months, getting very fed up with them!
Your welcome … as will be the DWP’s explanation.
As there are now links between DWP and HMRC, the fact the payment was taxed has probably automatically alerted DWP who will assume it’s earnings unless told, and evidenced, otherwise.
Do notify them asap.