Compensation Award

pstuart

A friend of mine, who is a disabled single mother with three children and living off benefits, has had the misfortune of receiving a disfiguring 'cut'
whilst visiting public premises.

Liability has been admitted and the salesman from her ambulance chasing solicitors is talking figures of over £50k.

Because she has received no extra benefits due to the accident, I assume no clawback from the DWP - but will this figure be considered as a capital disregard or will £50+k in the bank render her liable now for rent etc.

missile

I think it unlikely she will get 50K anytime soon

Indie_Kid

You may get a better answer on the benefits board.

ramsas

If you are awarded compensation
Check the facts
The Compensation Recovery Unit sends a certificate of recoverable benefit to the compensator and a copy of the certificate to you or your representative. The certificate shows how much benefit, if any, the compensator has to pay back to the DWP. If you do not agree with the information on the certificate, you have the right to ask for a review. There is information on the certificate that tells you what to do.
If you do not agree with a decision to reduce your compensation, you may be able to appeal. You can only do this after the compensator has reduced your compensation to repay benefit to the Department for Work and Pensions. You must appeal within one month of the date that the compensator makes the final payment of benefits to the Compensation Recovery Unit.
You can get more information from the leaflet Z2 What to do if you think a Compensation Recovery Scheme Certificate is wrong. You can get this from the Compensation Recovery Unit.
Postal Address

The Compensation Recovery Unit
Durham House
Washington
Tyne and Wear
NE38 7SF


Hope this of use.

ramsas

The solicitor involved in the case will take care of this,has required by law.There is no escaping any payback of any benefits you may have incurred has a result of payment from DWP has result of accident/injury.

sox8369

The other thing to bear in mind is that claim like this take years and years - my aunt had a claim that was 'straight forward' and should have been done and dusted within a few months - it has taken over 6 years so far. !

Tell your friend not to get their hopes up that the cash is arriving anytime soon, because it could be a long way off and by the time it does get through to her the circumstances with her finances may be totally different to where they are now.

krisskross

I would expect her to lose all means tested benefits following any sizeable compensation award.

So she would presumably lose IS, LHA and council tax benefit.

pstuart

I agree with you that she should but will she?

Breast_Cancer_Survivor

Why does my client need a Personal Injury Trust?

If your client is currently receiving means tested benefits and they are going to receive compensation which, when added to other savings, will give them more than £6,000, then they run the risk of having their benefit payments reduced. If the compensation, plus other savings, gives them over £16,000 in total, the client will lose their benefits entirely, until all the compensation money has been spent. Means tested benefits are:
• Employment and Support Allowance
• Income Support
• Housing Benefit
• Child Tax Credit
• Council Tax Benefit
• Pension Tax Credit
• Working Family Tax Credit
• Disabled Person's Tax Credit
• Jobseeker's Allowance

However, if the compensation is put into a Trust, under the Income Support (General)Regulations
1987, the value of the Trust Fund will be disregarded when assessing their entitlement to means tested benefits. The Trust need only be a very simple vehicle and the access of the client to the monies in the Trust need not be restricted.

Effectively the client is permitted to "have his cake and eat it", by keeping the benefits and the compensation award as well.

krisskross

Breast_Cancer_Survivor wrote: »

Why does my client need a Personal Injury Trust?

If your client is currently receiving means tested benefits and they are going to receive compensation which, when added to other savings, will give them more than £6,000, then they run the risk of having their benefit payments reduced. If the compensation, plus other savings, gives them over £16,000 in total, the client will lose their benefits entirely, until all the compensation money has been spent. Means tested benefits are:
• Employment and Support Allowance
• Income Support
• Housing Benefit
• Child Tax Credit
• Council Tax Benefit
• Pension Tax Credit
• Working Family Tax Credit
• Disabled Person's Tax Credit
• Jobseeker's Allowance

However, if the compensation is put into a Trust, under the Income Support (General)Regulations
1987, the value of the Trust Fund will be disregarded when assessing their entitlement to means tested benefits. The Trust need only be a very simple vehicle and the access of the client to the monies in the Trust need not be restricted.

Effectively the client is permitted to "have his cake and eat it", by keeping the benefits and the compensation award as well.

Think I'll trip over and claim huge wodges of compo.

No no good for me, don't get any means tested stuff. What an absolute rip off that is. Claim compensation from the taxpayers, get more money than most of them could ever dream of and still said taxpayers have to pay all the living expenses.

pstuart

Many thanks to all of you, probably the figure quoted by the salesman would be achievable if she only would be able to wait for it!

I reckon it will a much smaller amount.:o