compensation lump sum while on benefits, will it affect my income support? plz help

Phil_Welsh

Savings limit for Income Based claims has been increased to £16,000 and the tariff now starts at £6000. So if you have savings above £6000 a rough estimation is that they will decrease your IS payments by £1.00 for every £250 until it reach's the £16,000/£12,000 when you will no longer be entitled to IS. Contact your IS processing site and tell them of the change of circumstances so that you are not over paid or even worse considered for a fraudulent claim for not notifying them of the COC's.

Ted_Hutchinson

mclaren wrote:

legally - no way. sneeky way? give the £40k to another person to look after in a high intrest account, or invest it

That simply won't work as the DWP do check compensation awards and will crosscheck recipients against those getting benefit.

They will then reclaim any benefit paid in error and regard the Compensation as Notional Capital. It may not happen straight away but eventually they will put 2 and 2 together and seek to reclaim the fraudulently obtained benefit.

If you have pressing disability needs then you could spend some of the compensation on relieving those need, no Decision Maker is going to quibble about the purchase of an electric wheelchair or payments for disability related private surgery. Similarly a Funeral Plan is generally regarded as a sensible investment which can reduce your excess capital. Providing you keep receipts for major expenditure and can justify to an appeal panel those motives, (which are NOT to claim benefits you would otherwise not be entitled to) then you will be OK, but it simply isn't fair to have £40,000 sitting in an offshore account or your relatives accounts, and continue claiming means tested benefits.

I've had one person contact me about an inheritance she'd received 2 years previously but not declared (it was a holiday cottage) which the DWP had traced, if knowledge that the compensation has been paid, is in the public domain or somewhere where the DWP can trace it, then you've got to declare it.
Have a look at CODE OF PRACTICE ON OBTAINING INFORMATION and you will discover the powers the DWP have to obtain information from Financial Institutions.

singlehouseholder

Technically- the injured person doesn't repay any benefits paid as a result of the accident/injury. It is the compensators- Insurance company that are issued with a CERTIFICATE OF RECOVERABLE BENEFITS, although injured people often recieve them when they have no legal representation. So called because the ben's paid are/where due to an accident for which compensation is paid... As I've said on this board before, solicitors aka sharks... will agree to the amount on the certificate, tell you, the injured person they agree with the amount, bundle you off with your cheque all happy given to the amount of zeros, then the contact the CRU and ask for a REVIEW. If this REVIEW goes in the solicitors favour, guess where the cash goes... yes, you've guessed it, straight in the skyrocket of the solicitor. Not saying this happens all the time, just please beware, if you've had a serious accident/injury you should be awarded ALL the compensation, not have it shaved off left right and centre.
Hmm, as for cross checking compensation awards?? 'Fraid not......

dawn7

hi single. householder.
i spoke to a dwp person today he said basically, when you get a large sum of money like compensation, your benefits and housing benefits will stop. anything over 16000, pounds.
he said your allowed around £6000. in your banck account, also if i spent say £5000, in 1 day and £7000, in another and kept doing in in a week or so till it had all gone, i would still not get my benefits back, as he said you would of devalued the money, and then i wouldnt have any money to pay the rent so i could also become homeless, 1 thing after another,
he said the only way really is if you bought your council flat, if you had enough to do this then you would keep your benefits, but obviousley not housing benefits as its your own house. but as i live in london my place is around £150,000 to buy, so thats out the question,
surley there must be a loophole somewere around this,
basically it sounds like the dwp wont let you spend your money as you whant they want you to live on it till its all gone and pay your rent and council tax, etc. i cant see were the compensation benefits anybody on benefits. if your not allowed to spend it freely,
should i see a solicitor who deals in benefits, or a CAB, im sure theres a way to dispose of this compo, and still keep your council flat and benefits.
thancks for all your help , everybody hope to hear of a solution if there is 1 thnks dawn.

Scarlett1

dawn7 wrote:

im sure theres a way to dispose of this compo

there is, you come off benefits and live on the money :rolleyes:

you wouldnt lose your council property, what you would lose is the benefit to pay for it, but with £40,000 that would keep your head above water for a good few years

Jays

Hi dawn

Just occured to me, do you have any debts to clear? I'm not sure if this would be counted towards reducing your lump sum in the eyes of the DWP, someone else with more knowledge maybe able to comment.

Just a thought,
Best wishes with all this,

Jays

PS Also, could dawn 'ear mark' this money for help with her disability? For example, a modified car or equipment around her home - stairlift, adapted shower etc, if she needed them?

dawn7

hi jays
i understand the benefit ststem but , it does seem that your not benefiting really are you, whats there to gain from a compensation payment when really there stopping all your housing benefits and income support both together, weres the benefit of a comp payout??????????

there is none watsover is there, i also said what if i bet £40,000 on a football team to win the world cup and lost the bet in 1 day , they said i would not qualif yfor income support or housing benefit again, and would end up homless
how come all over a lump of compensation??? surley this cant be the answear.

CIS

The idea of state benefits is to back you up for periods where your having some sort of financial problems ie low income, once you have money that can be spent you are no longer in financial problems and can live off the money you get.

krisskross

dawn7 wrote:

hi jays
i understand the benefit ststem but , it does seem that your not benefiting really are you, whats there to gain from a compensation payment when really there stopping all your housing benefits and income support both together, weres the benefit of a comp payout??????????

there is none watsover is there, i also said what if i bet £40,000 on a football team to win the world cup and lost the bet in 1 day , they said i would not qualif yfor income support or housing benefit again, and would end up homless
how come all over a lump of compensation??? surley this cant be the answear.

Please don't think I am having a go at you but why would you expect the taxpayers to continue supporting you when you have access to more money than most of them will ever see as a plus figure in their bank accounts?

dawn7

krisskross
i suppose your 1 of them tony blair lovers and also supports the war, bye kross.