Would the DWP recognise my SIPP as a locked away pension which wouldn’t impact on welfare benefits?

Hello. I have been given authorisation by Grove Pensions to move one of DB pensions into a self managed SIPP with AJ Bell Youinvest.
Due to long term illness I’ve been unable to work for the past 8 yrs, and live on welfare benefits but as I my health improves I am hoping to return to work in late 2022. I have no intention of taking any income from this still to set up SIPP until my official retirement aged 67. I am currently aged 58yrs and as mentioned above I have Local Government pension valued at around £60.000.
My question is would the DWP recognise my SIPP as a locked away pension which wouldn’t impact on welfare benefits?
Kind regards
David

Hello David
All the time you are below State Pension Age and have not accessed your SIPP benefits they will not impact on means tested state benefits.
If you do take money out of the pension and spend it, then it will depend on what you spend it on as to whether it will count as capital you have “deprived” yourself of. If the authorities believe you have deprived yourself, they will treat you as though you have the capital in your procession when means testing any entitlement to benefits.
Once you reach State Pension Age, the rules change, and whether you are drawing on the pension pot or not, the authorities can consider you as being in receipt of a notional income.
I hope this answers you question. Happy New Year and I hope your health continues to improve.
Sam