Tax Allowances: Occupational Pensions:Written question - 237575

Q
Asked by Stephen Timms
(East Ham)
[N]
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Named Day

'Named day' questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.

Asked on: 27 March 2019
Department for Work and Pensions
Tax Allowances: Occupational Pensions
Commons
To ask the Secretary of State for Work and Pensions, whether universal credit claimants are able to deduct the tax relief claimed by relief at source pension schemes from their earned income figure to calculate their award of universal credit.
A
Answered by: Alok Sharma
Answered on: 17 June 2019

100% of contributions to employer pension schemes, whether Net or Relief at Source pensions, will be taken into account when calculating the level of employed earnings in UC. This means that a UC claimant that contributes to either type of pension will, automatically (where employers report the information correctly), have their UC entitlement calculated on their taxable pay, after their pension contribution. This ensures fairness for all affected UC employed claimants.

If there is some discrepancy in the way in which it’s reported, DWP will manually ensure that the Relief at Source pension contribution is deducted before any UC entitlement is calculated on their employed earnings.

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