Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, in what way defined contribution pension pots held in drawdown are taken into account when determining entitlement to means-tested benefits; and what guidance his Department provides to pensioners on the relationship between pension drawdown decisions and benefit eligibility.

For Universal Credit, a defined contribution pension pot that has not yet been accessed is generally disregarded. Once pension savings are accessed, regular drawdown payments are treated as income for Universal Credit purposes, while any lump sum withdrawals are treated as capital and assessed under the normal Universal Credit capital rules.

The Department's guidance, Pension freedoms and DWP benefits, explains how accessing pension savings, including through drawdown, can affect Universal Credit entitlement.