Will a compensation award affect my benefits

sharpy2010

VeniVidiVisafree wrote: »

cheers for reply about 13k...

Not everyone sits on their computer continuously, and I've only just seen your post to my original question. Getting on your high horse and berating me because I hadn't responded instantly to your reply means that in future I won't try to help you at all.

VeniVidiVisafree

sharpy2010 wrote: »

Not everyone sits on their computer continuously, and I've only just seen your post to my original question. Getting on your high horse and berating me because I hadn't responded instantly to your reply means that in future I won't try to help you at all.

errrm... I didnt get on my high horse I thanked you for your reply and told you how much, the sad face is the amount!!!!!!!
CHECK MY REPLY I HAVE NO IDEA HOW THANKING YOU IS BERATING YOU... duh!
I DIDNT EXPECT ANYONE TO RESPOND IMMEDIATELY I AM ONLY GRATEFUL TO EVERYONE WHO HAS ... AND WITH ADVICE

rogerblack

It will be ignored for one year, and then taken into account.
If you arranged to have it paid into a trust, it can be ignored forever, but this is something you need to get setup _before_ the payout happens.
Contact your solicitor.

sharpy2010

VeniVidiVisafree wrote: »

errrm... I didnt get on my high horse I thanked you for your reply and told you how much, the sad face is the amount!!!!!!!
CHECK MY REPLY I HAVE NO IDEA HOW THANKING YOU IS BERATING YOU... duh!
I DIDNT EXPECT ANYONE TO RESPOND IMMEDIATELY I AM ONLY GRATEFUL TO EVERYONE WHO HAS ... AND WITH ADVICE

My sincere apologies, I got completely the wrong end of the stick. I'm sorry the amount isn't as much as you wanted, like you said compensation isn't "free money", its cash in return for something having gone wrong which wasn't your fault.

Those who think it is free money are those who claim illegitimately.

VeniVidiVisafree

rogerblack wrote: »

It will be ignored for one year, and then taken into account.
If you arranged to have it paid into a trust, it can be ignored forever, but this is something you need to get setup _before_ the payout happens.
Contact your solicitor.

thanks for your response ... my local benefits office told me if I do that I will be prosecuted!... They said I have to notify them when I get the money and they will make their decision and alter my benefits accordingly. They have no information regarding amounts awarded or taken into account... so helpful... not! That was 9 phonecalls between me, lawyer, CRU, DWP, etc ... :mad:

rogerblack

VeniVidiVisafree wrote: »

thanks for your response ... my local benefits office told me if I do that I will be prosecuted!... They said I have to notify them when I get the money and they will make their decision and alter my benefits accordingly. They have no information regarding amounts awarded or taken into account... so helpful... not! That was 9 phonecalls between me, lawyer, CRU, DWP, etc ... :mad:

There are several elements.

Firstly, if there is a 'loss of earnings' element to the claim, then the DWP are entitled to any amount that they've paid for personal care over the period since the event due to it back.
If you manage to get the whole amount put in trust, then you would need to pay the DWP an a portion of this back, as you would have been overpaid ESA.

This may lead in principle to prosecution, though not if you paid them it in another means.

Secondly, of the remainder of the capital.
If you get the money _then_ put it into a trust, then yes, you will be treated as still having the money, as you were the owner of the capital during this period.

Thirdly - what benefit are you on, and how much savings do you have?

If you are on contributory ESA, it will not affect that, and 13K also won't eliminate (though will reduce your entitlement to CTB and HB.

http://www.dwp.gov.uk/docs/dmgch52.pdf is probably worth several reads. Specifically 52415, 52502,

These are the capital rules WRT ESA.

Unfortunately, the first-level staff you get on the phone are not very knowledgeable about the actual regulations.

Lastly - if you don't have significant savings, and you can spend reasonably 7K on things that are not luxuries or excessive, during the year, then it may be not so important, as during the 12 months that it's disregarded, you've spent the portion over 6K.

Reasonable might be for example getting a good secondhand car to replace an unreliable one, a decent washing machine to replace a failing one, or upgrades to your heating system to make it cheaper to run.

It would not be an overseas holiday to florida, or a brand new car.

VeniVidiVisafree

rogerblack wrote: »

There are several elements.

Firstly, if there is a 'loss of earnings' element to the claim, then the DWP are entitled to any amount that they've paid for personal care over the period since the event due to it back.
If you manage to get the whole amount put in trust, then you would need to pay the DWP an a portion of this back, as you would have been overpaid ESA.

This may lead in principle to prosecution, though not if you paid them it in another means.

Secondly, of the remainder of the capital.
If you get the money _then_ put it into a trust, then yes, you will be treated as still having the money, as you were the owner of the capital during this period.

Thirdly - what benefit are you on, and how much savings do you have?

If you are on contributory ESA, it will not affect that, and 13K also won't eliminate (though will reduce your entitlement to CTB and HB.

http://www.dwp.gov.uk/docs/dmgch52.pdf is probably worth several reads. Specifically 52415, 52502,

These are the capital rules WRT ESA.


Thank you so much for your lengthy reply... Benefits are work related ESA and Housing Benefit... no savings...

I spoke to the MANAGER at the Benefits office who would not give any help or information jst told me to notify when I received money and they would tell me what to do and how much i would be left with then!!!
There is no loss of earnings awarded to the compensation.
There was no personal care from DWP.
DWP said I could not spend ANY of the money until they had given their decision... including necessities like washing machine...

I did want to spend some of the money on a cheap car, washing machine, shower, and re-new tv license ( I had no tv, or mobile fone only broadband or social activity for over a year to reduce my outgoings!!
DWP said everyone has a mobile! didnt believe me when I had no mobile number to give them! They don't live in the real world if they think you can do everything on the amount we have to live off...

thanks for all your help and best wishes for a debt free christmas... :T

seeya23

The Compensation Recovery Unit

The Compensation Recovery Unit (CRU) is part of the Department of Work & Pensions. It administers recovery of State Benefits which are paid as a result of an accident or industrial injury out of compensation monies.
– Benefits will only be recovered if a compensation payment is made.
– The repayment will be deducted from your compensation payment before it is sent to you.
– Not all of your compensation payment can be reduced and certain benefits may only be deducted from specific elements of your award.
- There will be no deduction at all from the injuries, pain and suffering element of your compensation payment.

VeniVidiVisafree

its all becoming as clear as... mud !!!... conflicting advice is confusing the issue... am not the brightest bauble on the tree... ah hehehe.....
... however thanks to all MSE'rs for all your advice and responses... ))

xylophone

http://www.dwp.gov.uk/publications/specialist%2Dguides/technical%2Dguidance/gl27%2Dcompensation%2Dsocial%2Dsecurity/compensation%2Drecovery/ says:


Compensation recovery

How it works

When someone claims compensation, the person or organisation who is likely to pay you compensation (the compensator) must tell the Compensation Recovery Unit, which is part of the Department for Work and Pensions (DWP).
Have you:

Claimed or received compensation?
Received a social security benefit or lump sum payment because of your accident, injury or disease?
If YES to both, the compensator has to pay back to the Department for Work and Pensions the amount of social security benefit or lump sum payment you have received as a result of your accident, injury or disease.

If you have had an accident, the amount they have to pay equals the total amount of benefit you are paid from the day after the accident or injury up to the date of the final compensation payment or for up to 5 years – whichever is earlier.
If you have claimed benefit because of a disease, the amount the compensator has to pay is worked out from the day you first claimed a benefit because of the disease up to the date of the final compensation payment or for up to 5 years – whichever is earlier.
If you have claimed a lump sum payment because of a dust related disease, the amount they have to pay is the equivalent to the total amount of the lump sum or the gross amount of the compensation award, which ever is the least.
The person or organisation who pays your compensation may in certain circumstances, reduce the amount they pay to account for any monies they are required to pay to the DWP. See Which benefits count and which lump sum payments count.

Which benefits count

For loss of earnings

The person or organisation who pays your compensation can only reduce the compensation you are awarded for loss of past earnings if you have received one of the following benefits to meet the same need:

Disability Working Allowance
Employment and Support Allowance
Incapacity Benefit
Income Support
Industrial Injuries Disablement Benefit
Invalidity Pension
Invalidity Allowance
Jobseeker’s Allowance
Reduced Earnings Allowance
Severe Disablement Allowance
Sickness Benefit
Statutory Sick Pay paid before 6 April 1994
Unemployability Supplement
Unemployment Benefit.
For cost of care

The person or organisation who pays your compensation can only reduce the compensation you are awarded for cost of care in the past if you have received one of the following benefits to meet the same need:

Attendance Allowance
Disability Living Allowance (care component)
Industrial Injuries Disablement Benefit increase for Constant Attendance Allowance or Exceptionally Severe Disablement Allowance.
For loss of mobility

The person or organisation who pays your compensation can only reduce the compensation you are awarded for loss of mobility in the past if you have received one of the following benefits to meet the same need:

Disability Living Allowance (mobility component)
Mobility Allowance.

Which lump sums count

The person or organisation who pays your compensation can reduce any part of your compensation award (including damages paid for pain and suffering) if you have had a lump sum payment under the

Pneumoconiosis etc, (Workers Compensation) Act 1979 including any extra statutory payments made following the rejection of a claim under the 1979 Act
and or

2008 Diffuse Mesothelioma Scheme
Retirement Pension

Retirement Pension does not have to be paid back from an award of compensation.

But if you get any of the benefits and or lump sum shown above after retirement age, they may have to be paid back.

War Pensions

If you get a pension from the Veterans Agency (previously the War Pensions Agency), this may go down because of the compensation you receive.

If you are awarded compensation

Check the facts

The Compensation Recovery Unit will tell the person or organisation who pays your compensation how much benefit and or lump sum if any, they have to pay back to the Department for Work and Pensions. The information will be shown on a certificate. You or your representative will also be told about this and will receive a copy of the certificate.

If you do not agree with the amount they have to repay to the Department for Work and Pensions, 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 the decision to reduce your compensation, you may be able to appeal. You can only do this after the person or organisation who pays your compensation payment in order to repay benefits and or lump sums to the Department for Work and Pensions.

You must appeal within one month of the date that they make the final payment to the Department for Work and Pensions via the Compensation Recovery Unit.

You can get more information from the Recovery of benefits and or lump sums appeal guide (Z2)

If you are receiving benefit

You must tell the office that pays your benefit as soon as you get your compensation payment if you receive:

Income Support
Jobseeker’s Allowance
Employment and Support Allowance
Working Tax Credit
Housing Benefit
Council Tax Benefit
Pension Credit
If you get a pension from the Service Personnel and Veterans Agency, please make sure you let them know. Call the Veterans Free Helpline on 0800 169 2277.

Links below might also be of interest.

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

http://www.tollers.co.uk/page/Protecting%20your%20compensation%20from%20the%20Government

http://www.leoabse.co.uk/wwd/compprotectguide.pdf

http://www.tollers.co.uk/page/Which%20Benefits%20Affect%20your%20Compensation%20Award