Decision Makers Guide - DMG22048

Earnings-calculation of net earnings: Meaning of gross earnings and net earnings: Occupational and personal pension schemes

Only deduct sums paid towards a personal pension scheme from the earnings of an employed earner if the employed earner is the member of the relevant personal pension scheme.
EXAMPLE 1
The applicant is an employed earner and a member of a personal pension scheme paying £10 a week. Deduct £5 a week when calculating net earnings

Example 2

The applicant is an employed earner, but not a member of any personal pension scheme. The unemployed partner is a member of such a scheme and pays £10 a week. Deduct nothing from the applicant's earnings because the member of the personal pension scheme is the partner.

Example 3

The applicant is an employed earner, but is not a member of any personal pension scheme. The unemployed partner is a member of such a scheme. The applicant pays the £10 a week premium. Deduct nothing from the applicant's earnings because the member of the personal pension scheme is the partner