I think I know the answer to this, but my customer got a big redundancy payment and invested it into a Drawdown Pension Fund, which he can access funds from more or less at will, with the correct notice as he is over 55.
Their household income is below the Applicable Amount for UC as he gets Carers Allowance and his wife gets NSESA Support Group. He did not put the redundancy into a pension fund with any intention of claiming benefits, it is only now that he is a full-time carer that he has limited income.
I suspect the money in the pension fund will be classed as capital, but if it had been an occupational pension scheme that he had payed into over the years, then it wouldn’t.
Any thoughts would be appreciated.