We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Are disability premiums on income support included in the budget for a DRO?

Options
I have a DRO in place at the moment and have recently been awarded PIP and disability premiums on my income support. The DRO people confirmed that they won't take PIP into account for budgeting the £50 a week thing (because it's all allocated for my disability) but the people I spoke to were unsure about the disability premiums because while they are for my disability, they are technically part of income support.

Has anyone had any experience with this? I can send the paperwork off to the DRO people and they will let me know in a few weeks but I'm worrying a lot and kind of feel the need to mentally prepare for the fact the DRO might end and the creditors will hound me again!

Any information would be so much appreciated!

Comments

  • It is extremely unlikely that you would be penalised for this, but your best bet really is to speak to your Approved Intermediary, who should be happy to prepare a new budget for you, including the costs of what you have been given the extra for that you now have to pay out.

    I doubt very much it will make any difference at all, but your Intermediary should be able to put your mind at rest.
  • thewhiteavenger
    thewhiteavenger Posts: 291 Forumite
    edited 28 November 2014 at 6:52AM
    It's £50 per month surplus. IS (with its premiums) does count as income but the legitimate expenditure should deal with this and keep you under the threshold
  • wba31
    wba31 Posts: 2,189 Forumite
    It's £50 per month surplus. IS (with its premiums) does count as income but the legitimate expenditure should deal with this and keep you under the threshold

    This is the key thing. I had a conversation with Rob Woolley from the DRO Unit a few weeks back and he said if someone bypasses PIP income with matching expenditure and this starts to pile up in the bank account with no set expenditure need the will see this as cash in the bank.

    The conversation came about following a case we had where a colleague and i had a difference of opinion. A client received a back payment of PIP totalling £3000, but had no expenditure that this needed to be spent on, no outstanding carers bills or necessary items etc. When we asked the client she advised she would use this for taxi fares that she needs, but we had budgeted for these already with her existing PIP, and we had budgeted more than enough to cover this. It was confirmed by Rob that this money would be seen as cash in the bank, irrelevant of it's source, as the client had no intention for it's use.
  • I am sure with a bit of imagination it will be appreciated just how much extra expenditure the client hasn't been making that could make their life more comfortable, from having the carpets and curtains all properly cleaned to buying a new mattress. I wouldn't expect the additional income to be a problem.
    have recently been awarded PIP and disability premiums on my income support
    How long has this been backdated for? A large lump sum may be harder to deal with.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.