Pension lump sum

A client is coming up to State Pension age and is waiting for pension details from a defined benefit scheme.  It looks like she might have two options - a lump sum with monthly pension payments option or just a monthly pension payment option, I am looking at the impact on both Pension Credit and Housing Benefit.

If she takes the lump sum and then monthly payment option then I am aware that the lump sum will be treated as capital and the on-going monthly pension payments will be treated as income in full and will reduce entitlement accordingly.

However could taking a lump sum cause a problem with the amount of pension deducted from her on going benefit awards if she would have received a higher monthly pension payment if she had not taken the lump sum? ie could they to apply notional income to the calculation of Pension Credit or HB   ( if no pension credit entitlement?) if this is the case?

no, taking a (capital) lump sum now and a smaller pension doesnt count as deprivation ( because there is no derivation, its choosing to take a lump of capital ( which will count as capital from the time its received)  and getting less future income as a result.
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if your client was choosing not to receive the pension amount at all when theye could have done,, that may be deprivation