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Why Do I Have To Pay Back Incapacity Benefit

derbys
derbys Posts: 7 Forumite
in Benefits & tax credits
HI ALL

hope someone can be of help to me to cut a long story short i had a accident at work 4 yrs ago (my foot got crushed by a fork lift truck) and have been on incap/benefit for about 3.5 yrs.i claimed compensation and going to get paid out shortly but i have been told that i have to pay back all the incap/ben that i have been paid once i get my compo ,is st correct and why ?.also i am still unable to work as result ,so will i still get incap
hope someone can help me many thanks in advanced.:confused:
«1

Comments

  • Mips
    Mips Posts: 19,796 Forumite
    This happened to my Father in Law.. after he was left severely disabled by an industrial accident.
    :cool:
  • MRSTITTLEMOUSE
    MRSTITTLEMOUSE Posts: 8,547 Forumite
    They started doing this about 16 years ago,it's not something new I'm afraid.Before that your compensation was not looked at no matter why you received it.
  • calleyw
    calleyw Posts: 9,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    But as IB is not means tested why when you comp should have to pay back what you have been entitled to anyway.

    You can get IB even if you have millions in the bank.

    So can you still claim IB after the comp or does it stop :confused:


    Yours


    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    calleyw wrote: »
    But as IB is not means tested why when you comp should have to pay back what you have been entitled to anyway.

    You can get IB even if you have millions in the bank.

    So can you still claim IB after the comp or does it stop :confused:


    Yours


    Calley

    Derbys/Calley,Yes you can still claim IB after you have received the compensation.
  • calleyw
    calleyw Posts: 9,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    healy wrote: »
    Derbys/Calley,Yes you can still claim IB after you have received the compensation.

    Thanks for that but it still leaves the question of why you have to pay back all the IB.

    As you where entitled to it if you had the money before you started to claim IB and still entitled to claim it after having the money :confused:

    Yours

    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    calleyw wrote: »
    Thanks for that but it still leaves the question of why you have to pay back all the IB.

    As you where entitled to it if you had the money before you started to claim IB and still entitled to claim it after having the money :confused:

    Yours

    Calley

    The reason you have to pay back the IB is because otherwise you will be in effect compensated twice for the same thing as IB is an "earnings replacement" benefit.
  • calleyw
    calleyw Posts: 9,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    healy wrote: »
    The reason you have to pay back the IB is because otherwise you will be in effect compensated twice for the same thing as IB is an "earnings replacement" benefit.

    Yes I suppose that does make sense.

    But still seems a bit tight if you say got compensation £10K and you had £10k worth of IB it would have been a waste of time. And for some people they will never work again and that money could have been used to pay in to a pension or help pay off the mortgage or any debts they had.


    Yours


    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • donnalove
    donnalove Posts: 574 Forumite
    healy wrote: »
    The reason you have to pay back the IB is because otherwise you will be in effect compensated twice for the same thing as IB is an "earnings replacement" benefit.

    In your settlement you will get a compensated for loss of earnings over the years. Now because of your injury you claimed IB which in affect is classed as taxable income so you have had some income to live on.
    Therefore although you lost your wages you have still had income so this will be claimed back out of the loss of earnings, so you would be in the same position as if you hadn't lost earnings. You will get to keep any amount that is awarded for personel injury this is not touched by the state.
    yes you can carry on claiming IB after your claim is settled.
  • donnalove
    donnalove Posts: 574 Forumite
    calleyw wrote: »
    Yes I suppose that does make sense.

    But still seems a bit tight if you say got compensation £10K and you had £10k worth of IB it would have been a waste of time. And for some people they will never work again and that money could have been used to pay in to a pension or help pay off the mortgage or any debts they had.


    Yours


    Calley


    but your solicitor should make sure the settlement is correct regarding the loss of earnings and pain and suffering and make it clear what is being offered for each. Sometimes insurance companys do just do a 1 off settlement hoping you will take it and run without thinking of what the consequences will be.
    my advice would be to make sure you understand what you are being offered and if you are not happy with the amount then don't accept it.
  • calleyw
    calleyw Posts: 9,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Donna,

    That is very interesting as I have never been involved in a compensation claim at all so had no idea that it could effect any benefits you could get.

    And as I only have become in involved in benefits since Jan 2007 and non-means tested ones at that because we have savings. I never knew it was such a mine field.

    Yours


    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
This discussion has been closed.
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