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Mortgage lump sum payments, JSA and deprivation of capital

There has been a lot of speculation on other threads about whether redundancy money stops you from getting means-tested benefits; whether it is sensible to use it to pay off a chunk of your mortgage; and how the deprivation of capital rules apply to this situation. Since this is a complex area, I am asking if a professional would be kind enough to spell out how the rules work, and what the main factors are that determine how a decision is made.

Martin: maybe this should be a sticky?

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