Benefits after compensation lump sum

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Samarah86
Samarah86 Posts: 6 Forumite
in Benefits & tax credits
Hi I've found lots of info regarding compo whilst on benefits but I need to know what happens if u had compo but then needed 2 claim benefits.
I was awarded £20k 4 months ago and because my husbands wages were paying the bills we spent the compo money on debts, the new baby, and moving to a new home (rented) that would be better for the baby and our 4.5yo (ie not mould infested, damp and cold).
There's approx £2k left but this morning my husband has come home from work and said that his boss won't have any hours for him after this month and has to let him go (his last day will be the 31st march). We we be allowed to claim benefits or will they say its notional capital on the whole 20k?
Thanks
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  • pmlindyloo
    pmlindyloo Posts: 13,049 Forumite
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    Samarah86 wrote: »
    Hi I've found lots of info regarding compo whilst on benefits but I need to know what happens if u had compo but then needed 2 claim benefits.
    I was awarded £20k 4 months ago and because my husbands wages were paying the bills we spent the compo money on debts, the new baby, and moving to a new home (rented) that would be better for the baby and our 4.5yo (ie not mould infested, damp and cold).
    There's approx £2k left but this morning my husband has come home from work and said that his boss won't have any hours for him after this month and has to let him go (his last day will be the 31st march). We we be allowed to claim benefits or will they say its notional capital on the whole 20k?
    Thanks

    What kind of compensation is it?
  • pmlindyloo
    pmlindyloo Posts: 13,049 Forumite
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    Plus, check whether you are in a full service universal area.

    https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/
  • pmlindyloo
    pmlindyloo Posts: 13,049 Forumite
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    The above information would be good to know but deprivation of capital is when someone knowingly deprives themselves of capital in order to obtain or get more benefits.
    Based on what you have said it would be extremely difficult to prove that your husband knew he was going to lose his job and you would need to claim benefits so the answer should be 'no you haven't deprived yourself of capital'.

    If you can answer the questions above (different answers for different benefits) then there may be more reasons why you haven't deprived yourself of capital.
  • Samarah86
    Samarah86 Posts: 6 Forumite
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    Hi thanks for the reply.
    The compensation was for medical negligence. Basically I was sterilised because a) I have a genetic condition that I passed to 2 of my 4 'already here' children and 50:50 chance of passing it on to another baby. B) because of the condition my 2 kids have multiple health concerns/disabilities and c) pregnancy itself is extremely painful for me and renders me immobile from approx 20 weeks. However, the filshie clip on 1 side was found to be placed incorrectly resulting in my current pregnancy.
    Hope that helps.

    P.s my husband had an email from his boss asking if hubby wanted more hours just after Xmas, which hubby accepted, so could easily prove that we had no knowledge of him becoming unemployed.
    X
  • Samarah86
    Samarah86 Posts: 6 Forumite
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    Sorry missed the 1 about universal credit. My are isn't changing over until august this year so would need to claim income support (due to daughters disablities) or jsa. Also housing benefit and council tax benefit.
    My hope is that hubby will have a new job to to before the 31st thou
    X
  • Alice_Holt
    Alice_Holt Posts: 5,950 Forumite
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    Just to add that I would be in agreement with pmlindyloo that it would be very difficult for the DWP to claim deprivation of capital. One key element of D of C is that there has to be intention to claim or increase benefits. That would not have been your intention when spending the money.

    Is your disabled daughter in receipt of DLA? Is a DLA claim a possibility?
    Sounds like a JSA claim (contribution based?), HB, Child Tax credits, Council Tax reduction may be the route to go.

    It could be worth a visit to your local CAB / advice centre for a benefits check, and some info as to whether child's DLA is worth considering:
    https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/disability-living-allowance/before-you-claim-dla/check-if-you-can-get-dla/
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Samarah86
    Samarah86 Posts: 6 Forumite
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    Hi alice, yes my daughter gets DLA (Middle care currently but being reviewed for mobility element wen she turns 5).
    Thanks 4 the replies I was getting a bit worked up as only have 3 weeks til my due date so this has come at the worst possible time.
    X
  • Alice_Holt
    Alice_Holt Posts: 5,950 Forumite
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    Are you receiving carers allowance?
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Samarah86
    Samarah86 Posts: 6 Forumite
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    Not at the moment as hubby is earning more than £116 a week. I'm entitled to carers credits but get those anyway because I claim child benefit for her
    X
  • patman99
    patman99 Posts: 8,532 Forumite
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    I never knew CA was means tested. My oh gets CA for looking after a family member and I get way more than £116 per week.

    Anyway, your oh would be entitled to cont-based JSA for the first 6 months regardless. It is what happens after this that needs to be considered. Mind you. Depending on your OH's trade, he might just walk straight into another job (my fingers are crossed for him on this).
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)

    3-6 month EF £0/£3600 (that's 0 days worth)

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