Can housing benefit make a decision based on pension contributions?

[michrose86]

Housing benefit have said that they have overpaid me because of a rise in my partner's wage, his wages have not gone up, his work are taking more for his pension and they are saying that because of this we now have to pay back the money... is this right???

[factor-fiction]

I expect that they are basing their decision on his gross wage, which seems correct. The deductions for pension are a separate issue and I can't see that affecting your benefit entitlement

[hc4361]

Yes, it is his choice to pay in to a private pension. It is no different to putting wages in to a savings account as far as benefits are concerned.
I am assuming his gross wage has gone up, but not his net pay.

[themas]

The rule for housing benefit is that gross pay is taken & then any income tax & NI paid is deducted, as well as one half of any contributions to a company or private pension. The result in the earnings amount used in calculating the benefit entitlement.

If his gross pay has gone up but has been balanced by an increase in the pension deduction then only half of that increase would be allowed in working out his earnings amount for housing benefit.

If his gross pay has not gone up but the pension deduction has increased then his net pay will be lower than it was. In that case, the housing benefit should increase.

[trainers]

Could he ask his employer to carry out a salary sacrifice for the level of pension contributions. This would lower his gross pay.