Injury compensation affecting benefits.

Phil_Wood

I've just found this forum so please excuse me if I'm in the wrong place.

Problem..Partner and I both on income support..ages 53 & 55...I'm on DLA high rate mobility, low rate care.
Condition, cervical spondylosis, osteopenemia, & 3 heart attacks.....groan. :beer:...Oh, forgot to mention recent multiple spinal compression fractures.

Partner has just had injury & solicitor has accepted that compensation will be between 20 - 40 K

Because we on income support how will this affect us?......sol's letter states after savings of £3,000 our income will be reduced.
It goes on to say that after savings of £8,000 it will stop altogether.

A little bit of googling gives me different figures....one mentioning £16,000....Who is correct?

I'm no idiot but I can't physically bend in front of this computer all day doing research, I'd appreciate advice or a link to government legislation.

Phil.

Morglin

Try these:

http://www.dwp.gov.uk/docs/gl27-print-version.pdf

http://www.tollers.co.uk/page/How%20State%20Benefits%20affect%20your%20Compensation%20award

http://salmonssolicitors.co.uk/pages/personal_injury.php?page=personal_injury_factsheet_protection_trust

Lin

Oldernotwiser

Your solicitor is out of date. You can have £6,000 of savings without benefits being affected and, between £6,000 and £16,000 they are reduced on a sliding scale. Over £16,000 you cannot receive means tested benefits.

pandaspot

You really need to get the money into a trust. That way you can still receive help. You will only be given an annual amount from it each year but benefits are not allowed to included it in calculations. Think the links morgalin gave you explain this?

sunnyone

pandaspot wrote: »

You really need to get the money into a trust. That way you can still receive help. You will only be given an annual amount from it each year but benefits are not allowed to included it in calculations. Think the links morgalin gave you explain this?

Trusts are a bad idea, they mean that you cant just spend YOUR money as and when you want to.

[Deleted User]

If you are getting a large lump sum why should the taxpayer keep giving you means tested benefits?

pandaspot

The large lump sum of compensation is often paid to cover the loss of earnings and future loss of earnings. Putting this in a trust will allow you to have an amount every year. It is possible to take a lump sum through your solicitor. This way also protects your entitlements to benefit.

My brother had to do this following a serious hit and run.

Like all mOney when on benefits you can not be seen as gifting the money even though you don't have immediate access to it.

redz

pandaspot wrote: »

You really need to get the money into a trust. That way you can still receive help. You will only be given an annual amount from it each year but benefits are not allowed to included it in calculations. Think the links morgalin gave you explain this?

Not true

pandaspot wrote: »

The large lump sum of compensation is often paid to cover the loss of earnings and future loss of earnings. Putting this in a trust will allow you to have an amount every year. It is possible to take a lump sum through your solicitor. This way also protects your entitlements to benefit.



My brother had to do this following a serious hit and run.

Like all mOney when on benefits you can not be seen as gifting the money even though you don't have immediate access to it.

Not if the payment includes compensation for loss of earnings

Here is the guidance from the DWP's DMG

Decision_Maker's_Guide wrote:

Payment for personal injury
The law
29414 The value of
1. a payment made because of a personal injury if held on trust and
2. the right to receive payment from the trust
are disregarded indefinitely where the payment is made as a result of an injury to
either the claimant or partner
1
For example, the value of a payment made by the .
Criminal Injuries Compensation Authority is disregarded if held on trust and so is the
value of the right to receive payment from the trust. A trust exists if there is a
separation of legal ownership and beneficial ownership of the payment. The
disregard can apply even if there is no written trust document.
Note 1: Payments of income from the trust are income from capital and are taken
into account as income and not capital. (See DMG Chapter 28 for how to treat such
payments).
Note 2: This disregard does not apply if the injury was to a claimant’s deceased
2
partner .
Note 3: A payment made in relation to the costs of care associated with an
unwanted child in a “wrongful birth” case is a payment made because of a personal
injury, for instance in the case of a failed sterilisation or vasectomy.
1 JSA Regs, Sch 8, para 17; IS (Gen) Regs, Sch 10, para 12; 2 R(IS) 3/03
29415
Vol 5 Amendment 28 June 2009 Capital disregarded indefinitely 29416 29418
29416 Payments can only come within this disregard where the claimant or partner for
whom the payment was made themselves suffered a physical and/or psychological
injury. If there is any doubt as to what the payment was awarded for, then the DM
should request sight of the papers awarding the amount. These should specify on
what basis the award was made.
Example 1
Peter’s wife was killed in a road traffic accident and he was awarded £36,000 which
covered loss of earnings. As the award was not due to Peter suffering any injury to
himself, then this amount would be taken in account when calculating his capital.
Example 2
Fiona received £100,000 as the result of an assault on her partner which resulted in
his death. The award was for the psychological injury to Fiona arising from her
witnessing the attack. As the amount was awarded for the injury to Fiona, the
amount is disregarded in calculating her capital

http://www.dwp.gov.uk/docs/dmgch29.pdf

To sum up all that above. The lump sum payment if held in a trust will be disregarded. However, any payments made from the trust will be treated as income from capital and taken into account.

sunnyone

redz wrote: »

Not true



Not if the payment includes compensation for loss of earnings

Here is the guidance from the DWP's DMG



http://www.dwp.gov.uk/docs/dmgch29.pdf

To sum up all that above. The lump sum payment if held in a trust will be disregarded. However, any payments made from the trust will be treated as income from capital and taken into account.

And you get vertually zilch return on it as well as not having access to it to spend as you want, invest it wisely after spoiling yourself a little bit and it will last a fair while, then claim benefits when you get below £16k and you will get the full rate after you drop to under £6k

Phil_Wood

camelot1971 wrote: »

If you are getting a large lump sum why should the taxpayer keep giving you means tested benefits?

Oh how to answer this one when it's not directly related to the question?.....I'll try my best but I don't want to fall foul of the moderators on my first visit.

a) I didn't ask if my motives were ethical, I just want to know what's legal.
b) To follow from this I assume that if ridiculously highly paid government officials have done their job correctly, the unethical practices would have been made illegal by now.
c) The benefit system has been designed to assist people who are in need, ...I do not want to abuse it or do anything illegal. I simply want to get the best out of it that I can.....The government are constantly stating that there are £millions in un-claimed benefits.
d) I didn't design the system, I've contributed to it (By force) for all of my working life.
e) Government officials & MP's find it OK to use the system to their advantage without prosecution.....why shouldn't I?....I didn't ask to be disabled & my partner didn't ask to be injured.
f) The system in this country is a bit like an insurance policy.....would you pay insurance premiums then have your pay out deducted from you?
g) I have apx £50 per week deducted from my DLA for an essential Motability car.....Why can't I simply dispose of £20,000 pound on a car and keep my DLA?

I could go on forever at this rate.

Phil.

Phil_Wood

Apart from that....Thanks to everyone for the response, it's been very helpful.

Phil.