Claim. Will this effect Income Support?

getzls

My daughters friend got £40,000 from a car crash claim settlement. She recieves I.S. Will this effect her I.S.? Does ahe need to tell them? I get a feeling it will not effect her I.S. but i know someone on here will know more than just a feeling. Told her to check with C.A.B. but on here will be quicker. Thanks.

LadyMorticia

Because IS is means tested, she will have to let them know (as far as I know) and as it's over £16,000 (which is the upper capital threshold for IS) then her IS will stop.

Someone will correct me if I'm wrong though.:o

Anubis_2

I would imagine so, it would also affect HB and other means tested benefits. If someone has 40 k they are viewed as not really needing income support, as means tested benefits are meant to be a safety net for when people do not have the money to support themselves.

paddedjohn

I think compensation for injuries can be disregarded in certain circumstances, not completely certain but im sure i read a post on here a while ago.

Anubis_2

I believe if it's only in a trust that it may be. OP click on the plus sign next to capital and income towards the bottom of this page, it explains more there.

http://www.nhs.uk/CarersDirect/moneyandlegal/otherbenefits/Pages/how-much-income-support.aspx

However, rules might be different for HB, CT and similar. Some on here know the rules so will be able to provide a more definitive answer but recommend you perhaps seek advice from your local CAB.

rogerblack

If this was for personal injury, then in general, it may be disregarded for 12 months.
If the money was placed in trust and never was in the claimants bank account then it may be ignored indefinitly.

_HOWEVER_.
After the 12 months is up, the remaining money will count.
In addition, any money spent on other than essentials, or paying off debts that the lender is demanding immediate payment of, may be counted as if you still have it.

So, if you blow 30K on a trip to Vegas and the casinos - you will be treated as if you have 30k of 'notional capital' - plus 10K of the remainder.
The two amounts are added together for benefits purposed, so you are treated as if you still have 40k.

You can get prior approval for large purchases from the DWP, which they can't go back on later.

In addition, if they are on IS due to disability from the accident - a fraction of the compensation may be due to the DWP.

paddedjohn

Ive just found the thread i was reading but i cant do links, there is loads of info on it regarding a 52 week disregard and trusts.
ticktack 25-03-2012, 6:31 PM this is were i found the thread but i cant do any more
Personal Injury Trusts - can you set one up without a lawyer?

paddedjohn

can someone show me how to do links please;)

Anubis_2

paddedjohn wrote: »

Ive just found the thread i was reading but i cant do links, there is loads of info on it regarding a 52 week disregard and trusts.
ticktack 25-03-2012, 6:31 PM this is were i found the thread but i cant do any more
Personal Injury Trusts - can you set one up without a lawyer?

To link a thread, simply go to the thread then click your mouse in the browsers address bar and then right click to select all, then right click again and press "cut"

Then go to your response, right click and select paste to put the link in your response.

It's easier to tab it as you can have the thread you are respinding to open in one tab, and the link you want open in another tab.

ETA: I was writing this out, posted it then your post appeared asking someone to show you

Thread located here for OP https://forums.moneysavingexpert.com/discussion/3870049

paddedjohn

ive tried that but whats the posters address bar look like? btw im getting too old for modern tech

Anubis_2

The address bar on your browser is where you type in a web address, such as https://www.google.com.

You don't need the posters address bar, you simply get the thread up in your own browser and cut and paste from the address bar of your own browser.