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

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Comments

  • krisskross
    krisskross Posts: 7,677 Forumite
    dawn7 wrote:
    krisskross
    i suppose your 1 of them tony blair lovers and also supports the war, bye kross.

    No i am just an ordinary tax payer.
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    Krisskross has a fair point, the gain is that you do not need means tested benefits as you have plenty of money.
  • dawn7
    dawn7 Posts: 22 Forumite
    so you should, keeps people like us going, ta
  • GOOD_BOY_3
    GOOD_BOY_3 Posts: 226 Forumite
    i see what you mean as i am on benifit and if i got a compo claim awarded i would want to save it or spend it on what i wanted it is not a income lump sum and not ment for bills.
    but then i see the point of the other people as if you have 40.000 why would you need benifit.
    anyone in your position would want to keep the benifits and compo but any one in the tax payers situation would want you to spend it.
    do you have any one you can trust with the money to put it in there account or maybe in an off shore one?? (i dont know how it works but worth a try if you want to keep it!!)
    any way good luck
    Thanks every1 for making this website what it is, its helped me alot in the past!
  • Becles
    Becles Posts: 13,184 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    GOOD_BOY wrote:
    do you have any one you can trust with the money to put it in there account or maybe in an off shore one?? (i dont know how it works but worth a try if you want to keep it!!)

    Why are you recommending benefit fraud? :eek:

    I'm with kirsskross. Benefits are designed to help people who do not have enough money coming in to live on.

    £40,000 is a lot of money and you will be able to live on that for a long time, hence you do not need any help from benefits to survive.
    Here I go again on my own....
  • viktory
    viktory Posts: 7,635 Forumite
    dawn7 wrote:
    so you should, keeps people like us going, ta

    I am with Krisskross on this one. Dawn7 you are rude and are planning on cheating the system. If you have a compensation payment then you must use that to live on and give up your benefits. Don't be greedy.

    Should you continue with your plan I sincerely hope you get caught. And yes, I am having a go at you. People like you make me mad, it's all self, self, self. No consideration for the hard working tax payer. You do understand where your benefits come from, do you? Not from the Goverments pockets but from the pockets of decent, honest, hard working people.
  • Ted_Hutchinson
    Ted_Hutchinson Posts: 7,142 Forumite
    Jays wrote:
    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,
    This is one thing that really annoys me about the way the DWP regard lump sum payments to people on means tested benefits.
    If the debt is in the form of credit/store card loans then you are only allowed to pay at the minimum monthly payment, ie ONLY that which you are legally required or obliged to pay anything additional could be regarded as intentional deprivation. Paying the most expensive debts off first, which is what Martin would suggest, is actually prohibited. As far as the DWP are concerned your first duty is to support yourself without reliance on the State so your first obligation isn't to sorting out your debtors but to the DWP.

    If the debt was in the form of an overdraft, so the money went straight to your bank and your bank took the inpayment to eliminate the overdraft, then this would not be regarded as intentional deprivation because you weren't able to stop this.

    I don't know what happens in the case of OFFSET mortgages where they are linked to your current account. Hopefully someone else knows. But it would seem somewhat unfair if ordinary Mortgage holders cannot use lump sums to pay off mortgage early but Offset mortgage holders can have their mortgages reduced.

    The main thing you have to show is your "Intention" when disposing of the capital and this recent case sums it up.

    [FONT=&quot]Commissioners Decision CH/4971/02[/FONT]
    Is it sufficient grounds to assume they have taken advantage of the scheme if a claimant is aware that they will become entitled to benefit once they have disposed of an asset?
    [FONT=&quot]“The fact that a person knows the probable consequence of an action does not necessarily mean that the action is taken for that purpose. A person who runs in front of a lorry to save a child knows there is a risk of being killed, but no one would say the person ran in front of the lorry for the purposes of being killed. Knowledge of the consequences is evidence of purpose, but not conclusive. Its significance depends on the context and circumstances of the case.”[/FONT]
    My weight loss following Doktor Dahlqvist' Dietary Program
    Start 23rd Jan 2008 14st 9lbs Current 10st 12lbs
  • viktory
    viktory Posts: 7,635 Forumite
    Thanks for the lovely, warm message of support Dawn7, via PM. You have really made my day - such a well written, insightful piece of prose. It put a real smile on my face.:rotfl:
  • krisskross
    krisskross Posts: 7,677 Forumite
    All my working life I received "compo" at the end of the month. Only thing was it was called salary. However it could have been described as compensation for the effort required to get out of bed everyday and go to work. I was however expected to support myself and my family on this cash.I wonder what the reaction would be if all workers decided that the money they got from work should not be used to pay for a home, food and bills or indeed towards the benefit system to support those unfortunate enough not to be able to provide for themselves?

    I think the amount of savings allowed before benefits are cut is fairly generous since the limits have risen this year. Please do not anyone on here condone benefit fraud or be suggesting murky ways round Dawn7's dilemma. She should pay her way like the rest of us whilst she has the financial means to do so.
  • dawn7
    dawn7 Posts: 22 Forumite
    ted hiya
    so whats the best way to keep on benefits with £40,000

    regardless of what other comments say, im sure if other people had £40,000 they would also like to continue on there benefits instead of the system been giving it to you in 1 hand and taking it back in the other, we know its enough to live on but it is a award of compensation, for terrible injuries i suffered.
    and not be classed wit hincome support and housing benefits,

    WHATS THE IDEA OF GIVING YOU IT IN THE FIRST PLACE IF THEY TAKE IT BACK IN ANOTHER WAY, THATS THE POINT.
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