Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether his Department has assessed the extent to which higher voluntary workplace pension contributions increase Universal Credit awards; and whether he has considered the potential merits of introducing limits on the level of pension contributions that may be deducted from earnings for the purposes of Universal Credit assessment.
No such assessment has been made.
Universal Credit is assessed using a claimant's net earnings. Employee contributions to an occupational or personal pension are deducted when calculating earnings for Universal Credit purposes, in line with the legislative framework for determining entitlement.
The Department has not considered introducing limits on the level of pension contributions that may be deducted from earnings for Universal Credit purposes.