Compensation affect non-means test benefits?

rach001

Looking for some advice please.

I had an accident 3 years ago and the legal battle is finally drawing to a close next month. I am due to receive about £3k, £4k maximum.

I was in reciept of low rate dla prior to the accident and still recieve this due to pre-existing disability. Since my forced resignation from my job last year due to continued absenteeism after the accident, I have been in reciept of ESA Contribution based. The accident caused a worsening of my disability and I remain unable to return to work. The physical injuries lasted about a year.

I simply wish to know if I have to declare the compensation to the DWP or not as the benefits I recieve are non-means tested and I am not in reciept of any other benefit as my husband works. The compensation will be used solely to pay off the debt I have incured since losing my job and once this is paid there will be nothing of it leftover.

I am just concerned as I've read differing things on the internet and I'm worried that it may have to be paid to the DWP or the ESA stopped. I desperately need to pay my debt and this would help greatly but I do not wish to get into any trouble and will of course declare it if it is a legal requirement to do so.

Thanks for any help and advice, much appreciated.

sleepless_saver

I can't see how paying the debt off would be a problem as it doesn't affect your benefits at all and won't in the future.

KxMx

With the DWP I always say, if in doubt, declare it!

RAS

Does the compensation take you total saving oer £6000 or £16,000 as these are the limits that affect acces to benefits. Over £16,000 you do not get mean-tested benefits.

bobajob_1966

RAS wrote: »

Does the compensation take you total saving oer £6000 or £16,000 as these are the limits that affect acces to benefits. Over £16,000 you do not get mean-tested benefits.

The OP is not claiming means tested benefits!

OP, you do have to declare it as, depending on the type of award you receive, there may be a deduction for the ESA you have received. If you have a solicitor dealing with your case, they will be able to advise on this.

rach001

wow thanks so much for the very speedy replies.

I don't have any savings at all - just debt :-(

bobajob 1966 - what do you mean by "type of award"? I'm very worried that I may lose the whole payout. If I declare to the DWP and say that I am going to pay it off my debts and indeed provide proof that I have done so, would that be ok?

Anymore advice greatly appreciated as I really am worried about this and simply wish to pay a portion of my debts incured since losing my job.

bobajob_1966

rach001 wrote: »

wow thanks so much for the very speedy replies.

I don't have any savings at all - just debt :-(

bobajob 1966 - what do you mean by "type of award"? I'm very worried that I may lose the whole payout. If I declare to the DWP and say that I am going to pay it off my debts and indeed provide proof that I have done so, would that be ok?

Anymore advice greatly appreciated as I really am worried about this and simply wish to pay a portion of my debts incured since losing my job.

If your award has an element for loss of earnings, the DWP may have a claim on this. This would normally be handled by your solicitor before the money is passed to you.

If this is applicable to you, do not spend the money until the DWP have said you can do so - they have first claim to it!

Benefits_Bod

Even if the OP had been on means-tested benefits, payments in consequence of personal injuries are subject to disregards. Unfortunately, the disregards vary from benefit to benefit and I'm not able to research all of them. For Income Support, payments made from a trust derived from PI payments are disregarded as are payments received by virtue of either a court order or "any agreement".

For HB/CTB, the "trust" provision appears to be the same (at least in substance). But for direct payments, the FIRST payment would be disregarded for 52 weeks from the date of payment whilst further (non-periodical) payments would not be disregarded at all.

rach001

bobajob 1966 - As far as I'm aware there is no loss of earnings element - I recall recieving a letter stating that I hadn't been paid any benefits as a result of the accident. However, I did resign due to an exacerberation of pre-exisiting conditions yet the medical reports I have both came to the conclusion that they couldn't disentangle symptoms before and after the accident so they both state that I had to leave my job due to my disablity and not due to the accident, yet I have commented on the reports that are being submitted stating that the accident worsened my pre-exisiting conditions and therefore I lost my job. I am in receipt of Contribution based ESA so it is not means tested.
Gosh, I'm really confused now but I do appreciate your help.

Benefits Bod - thanks for this info but I'm afraid I really am confused by it. I'm hopeful that it will be disregarded. It is no more than £4k and I have never claimed any means tested benefit in my life, I also have zilch savings and about £12k in debt :-( I am in receipt of dla low rate care of which I have had since March 2008 and Esa Contribution based since losing my job a year ago - I passed the medical straightaway and have not expected to work. How do I find out if it will be disregarded?

Benefits_Bod

As bobajob more or less says, if ESA is contribution based, it won't be affected by any compensation in the context of means testing. But if the contribution based ESA becomes time limited, as is currently proposed, you would almost certainly switch to income related ESA and that is means tested. Based on the info given, £4k won't affect it, even if it couldn't be disregarded.

Another thought springs to mind relating to DLA. Is it possible you would be entitled to the middle rate? If ESA is your only income, entitlement to the middle rate of DLA (care) would put you in a position of being entitled to income-related ESA with the "severe disability premium" being payable. BUT, a huge note of caution. Whenever trying to get an increased rate of DLA, there is always the risk of losing what you already have. Unfortunately, I have no real knowledge of DLA so it would be sensible to try and get advice from someone who really does know about DLA.

Finally, are you on HB or CTB? If so, they count as means tested benefits. However, so long as your total capital is less than £6k, no effect on HB or CTB (per RAS' post).

rach001

Thanks Benefit Bod.

I don't get any means tested benefit and never have as my husband works so we aren't entitled to anything else. I won't be transfered to income based esa due to my husband working.

Thanks for the info about dla - I'm only entitled to low rate.

All I'm concerned about is if I need to tell the DWP about the payout and if they will take it from me? I simply wish to pay off some of the enormous debt I have with it as this will enable us to manage far better. The debt was incured from ill health and trying to stay afloat. Once the esa i currently recieve stops (supposedly in April) I will only get dla.