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Does Compensation Count as Savings?
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tparkin
Posts: 66 Forumite
Hi,
I just found out that the company I work for are closing the office I work in and making all of the staff redundant, albeit I'm safe for another 3-4 months as I am on secondment to one of our clients. My question relates to compensation that my wife received last year, following an industrial injury that happened while she was working for the NHS.
This compensation is currently in a savings account in my wife's name, but as it was compensation covering future loss of earnings, lack of amenity, etc. is there a chance that it won't be taken into account when assessing my entitlement to benefits?
This is the first time ever in our married lives that we have had a reasonable amount of money stashed away, and it would be tragic if we had to spend most of it on just keeping afloat, if I can't get a new job for ages.
I just found out that the company I work for are closing the office I work in and making all of the staff redundant, albeit I'm safe for another 3-4 months as I am on secondment to one of our clients. My question relates to compensation that my wife received last year, following an industrial injury that happened while she was working for the NHS.
This compensation is currently in a savings account in my wife's name, but as it was compensation covering future loss of earnings, lack of amenity, etc. is there a chance that it won't be taken into account when assessing my entitlement to benefits?
This is the first time ever in our married lives that we have had a reasonable amount of money stashed away, and it would be tragic if we had to spend most of it on just keeping afloat, if I can't get a new job for ages.
Wishing for a thing does not make it so
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Ring up and ask.But as far as i know money -any money no matter where it is from is classed as savings and it IS taken into account.You are allowed a certain amount but this is only £6000.
Doesnt really matter where you got the money from-the point is you have it and it is something you have "saved" for the future etc...
Can i just ask why you would want money from the tax payer if you have got enough of your own money to get by on until you find another job anyway?? doesnt seem very fair really if you take it into account.
If youve got your own money-why claim someone else's??
There may be someone out there in genuine need,where as you-have your own money
Having a coke with youis even more fun than going to San Sebastian, Irun, Hendaye, Biarritz, Bayonne
or being sick to my stomach on the Travesera de Gracia in Barcelona0 -
If the compensation was put into a carefully worded trust (ie. can only be used for special requirements relating to the injuries for which the compensation was awarded) then no, it wouldn't count.
But if it was just given as a lump sum that went into your bank accounts to be spent on whatever you want whenever you want, then yes it will count against you.Cheryl0 -
At the risk of being flamed, I think it's very unfair that anyone who has worked hard all of their lives and never received any help from the state, have to potentially lose all they have built when they fall on hard times. This is probably over dramatising my own position somewhat, and I may be lucky enough to be taken on by the organisation I am seconded to or to get another job fairly quickly.
This isn't the place for a prolonged rant about the welfare state, but it does seem to me that many people and families (us included) fall between two stools, where we basically have to fend for ourselves when fall on hard times. It is surely a natural desire for anyone to protect what they have at times like this, and if I can legally hold on to what we have achieved over the past 17 years, I will.Wishing for a thing does not make it so0 -
But don't you see , you have fallen on hard times potentially which is the exact reason you have saved wouldn't you say?#6 of the SKI-ers Club :j
"All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke0 -
If the compensation was put into a carefully worded trust (ie. can only be used for special requirements relating to the injuries for which the compensation was awarded) then no, it wouldn't count.
But if it was just given as a lump sum that went into your bank accounts to be spent on whatever you want whenever you want, then yes it will count against you.
Spot on
And it is worth saying also that the capital from the personal injury payment is disregarded for benefit purposes for 12 months after it is received to give your wife time to put it in such a trust.
If you are made redundant then sounds like you will qualify for contributions based JSA. This is paid for 6 months (or until you find another job if less and assumes you have no pension income being paid to you) at £60.50 per week and your (and your wife's) savings are ignored for this benefit.MSE. Abandon hope all ye who enter here
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You can set up a trust at any time after an award is made, the 52 week rule is only to do with keeping benefits youve already had in the interim period. Setting up a trust now even 5 years later is perfectly acceptable to protect future benefits. Only thing is you have to be reasonably able to prove the money that goes in was from the original award of damages, you have to be able to identify it and prove where it came from0
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I`m sorry I dont get this "setting up trust"thing,if that was the case then anyone with substantial savings could do this then get benefits as if the money didnt exist,then once back in work they could access the money once again.Am I being thick?
I do agree that compo can be ignored for 12 months for benefit reasons.0 -
I agree, if the DM decides that a claimant has opened up a trust to dispose of their savings in order for them to claim benefits surely it would be treated as nominal income?I`m sorry I dont get this "setting up trust"thing,if that was the case then anyone with substantial savings could do this then get benefits as if the money didnt exist,then once back in work they could access the money once again.Am I being thick?
I do agree that compo can be ignored for 12 months for benefit reasons.0 -
why dont you use it to clear off your mortgage if you have one. then you will be better off as you wont be paying interest. then everything will be above board and if necessary, you can perhaps claim the benefits that other people claim. good luck0
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That would probably be seen as deprivation of capitalcatenorfolk wrote: »why dont you use it to clear off your mortgage if you have one. then you will be better off as you wont be paying interest. then everything will be above board and if necessary, you can perhaps claim the benefits that other people claim. good luck0
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