Compensation received on benefits partner on DRO

pma1979

Hi, new to the forums and have a bit if a dilema. I'll start at the beginning.
Sorry, think I originally posted in the wrong forum!
I am 32, lived with my ex partner for 9 years. We split up, then I met someone else. My current partner is almost 30, permanently in a wheelchair and has an 11 yr old Daughter. We live in a housing association bungalow and are on benefits (I quit work, to care for my partner.). In March, I applied for a DRO as I could no longer afford to pay my credit card etc debts of around £8000. My Partner has no debts, other than personal ones, which we also struggle to pay any of, due to my DRO only allowing £50 a month disposable.
Before I met my current Partner, she had a "misfortune" (no details as this is personal) and was advised to put in a claim for compensation from CICA. This week, we receoived a letter to say she has been awarded £11000.

The dilema: She wishes to pay back her personal debt. This was accrued when she moved house very suddenly due to the "misfortune". Her Mother spent almost £8000 on her credit card to help her move. Now, I have looked and, if we give away any of the money, apparently this could be construed as "deliberate deprivation"? If she doesn't pay back this money, we will continue to struggle to pay any if it back, but our benefits will be reduced! We also need to know, will this money affect MY DRO? If so, how can this be fair? This happened to her BEFORE she met me, so I personally believe, this money should not be taken into account re my situation, as I don't want any of it. I think it should be for HER to spend, as she sees fit. Can anyone advise us here?

dojoman

Try posting in the DRO forum, you should get more advice there:)



http://forums.moneysavingexpert.com/forumdisplay.php?f=159

nissan25

This will be seen as Deprivation of Capital by DWP and if the debt is paid off it will be treated as if you still have the capital and an assessment will be done on your benefit - diminishing notional capital.

Basically the decision maker will look at reasonable living expenses / purchases against your current spending pattern and notionally reduce your capital on an ongoing basis until it falls below £6k which does not apply a capital tariff to the benefits.

DWP view this on the basis that she is not expected to repay the debt in one go and over a period time therefore if the debt is repaid in full the above implications will affect your benefit.

nissan25

I also forgot to say irrespective of when the debts occurred you are now a family unit and claiming benefits as such plus the fact the compensation has been paid at this particular time the decision I outlined will apply.

Though it makes sense to try and clear your debt, when you claim means tested benefit which is public funds, i.e. tax payers money you and DWP have to abide by the law. DWP are notified of all compensation paid to people via Compensation Recovery Unit so even if you do not declare it now they will know at a later date and take the necessary action which can include prosecution.

I hope my answer helps you