JSA & Personal Injury compensation

Adarra

Hey

I'm currently on JSA and no other benefits. I'm about to receive just under £8,000 compensation from a personal injury claim made a year ago. The payment is only for care & pain and suffering. I didn't claim for loss of earnings or anything else.

I'm not sure what happens now, I believe I do need to tell DWP but I'm not sure when because of this:

There is a period of 52 weeks beginning with the day upon which a Claimant first receives any payment in consequence of a personal injury claim before the capital is taken into account for the purposes of certain means assessed benefits.

Does this mean I don't need to say anything for 52 weeks? Will the DWP be notified of the compensation cheque anyway?

Additionally I'd like to give £2,000 to a family member who has helped me a lot in the past. Is this even possible or will there be question of where the 2,000 went? I'm aware of the savings limit and I will be over the 6,000 threshold but I won't be after I give 2,000 away.

Thank you.

pmlindyloo

Adarra wrote: »

Hey

I'm currently on JSA and no other benefits. I'm about to receive just under £8,000 compensation from a personal injury claim made a year ago. The payment is only for care & pain and suffering. I didn't claim for loss of earnings or anything else.

I'm not sure what happens now, I believe I do need to tell DWP but I'm not sure when because of this:

Does this mean I don't need to say anything for 52 weeks? Will the DWP be notified of the compensation cheque anyway?

Additionally I'd like to give £2,000 to a family member who has helped me a lot in the past. Is this even possible or will there be question of where the 2,000 went? I'm aware of the savings limit and I will be over the 6,000 threshold but I won't be after I give 2,000 away.

Thank you.

There is, indeed, a 52 week period when a personal compensation is disregarded for income based benefits.

During this time you can do what you want with the money and there will be no question of deprivation of capital.

However, it would be sensible to inform the DWP that you have received this money (they will probably require evidence) so that they can make a note on your file that it is a personal compensation payment and has a 52 weeks disregard.

NYM

I believe that the CPU (Compensation Recovery Unit) will automatically be notified of the payment from the Insurance company that pays out to you.

rogerblack

Adarra wrote: »

Does this mean I don't need to say anything for 52 weeks? Will the DWP be notified of the compensation cheque anyway?

Additionally I'd like to give £2,000 to a family member who has helped me a lot in the past. Is this even possible or will there be question of where the 2,000 went? I'm aware of the savings limit and I will be over the 6,000 threshold but I won't be after I give 2,000 away.

Thank you.

As a general point.
You can deprive yourself of capital, not income.
There is no risk of being found to have deprived yourself of capital if you pay someone else all your benefit income as it arrives, not allowing it to accumulate.

Then pay all your expenses out of the capital.
Separate accounts would make this clearest.

(technically, you can deprive yourself of income, but this means not taking all income you can - not how you spend it. There is no requirement that income be spent on reasonable things.

Adarra

NYM wrote: »

I believe that the CPU (Compensation Recovery Unit) will automatically be notified of the payment from the Insurance company that pays out to you.

So I should tell them immediately then.

Thanks guys!

NYM

Adarra wrote: »

So I should tell them immediately then.

Thanks guys!

When you initially made the claim, the insurance company receiving your claim would have had to inform the DWP. The Solicitor will also notify the DWP of the date and amount of the settlement.

To 'tidy' everything up, you should also notify the DWP that your financial situation has changed.

10pence

And any other benefit agency you might receive means-tested benefits from; such as housing benefit and the local council.

Adarra

I am only on JSA. I'm not on any other benefits and never have been.

skcollobcat10 wrote: »

I think that I had to pay back approx £35,000.

What?! I'm hoping you're talking about something else. Why would you owe them money back? Is this even relevant here? I don't want to be worried about something that is completely different.

NYM

Adarra wrote: »

I am only on JSA. I'm not on any other benefits and never have been.


What?! I'm hoping you're talking about something else. Why would you owe them money back? Is this even relevant here? I don't want to be worried about something that is completely different.

You cannot be paid for the same thing twice, therefore if you settle a claim for personal injury, any compensation awarded will have the amount of any benefits received as a result of the injury, clawed back by the DWP Compensation Recovery Unit (CRU).

If you've not claimed or received any payments from the State then there is nothing for them to reclaim. Your Solicitor should deal with everything.

Adarra

NYM wrote: »

If you've not claimed or received any payments from the State then there is nothing for them to reclaim. Your Solicitor should deal with everything.

That's why I don't understand that post I quoted. As I said it's pretty clean cut, I claimed no other benefits, only JSA. I was never injured to a point of being unable to work. I didn't claim anything else. Only a personal injury claim with a solicitor.

10pence

Then you have noting to worry about. To be safe just inform the Job Centre about the money as someone mentioned earlier.