Settlement for discrimination and ESA??

Honest_Frederick

Hi,
Desperately trying to help a client with a question!
Client is on ESA(ir) and is about to settle a claim for disability discrimination.
Can anyone tell us how DWP are likely to view her settlement pay out? Capital? Income? Personal Injury?
We are REALLY struggling to find out.
Can anyone help us find the right answer as we've tried the usual places and are drawing a blank...
TIA ;-)

Guest101

You say client - so your role is?

tensandunits_2

It's not income. I'd think it would be capital, or something along those lines. Sorry I can't be more help.

Alice_Holt

I'd suggest your organisation / solicitors office invests in a copy of:
CPAG welfare rights book: http://www.shop.cpag.org.uk/welfare-benefits-and-tax-credits-handbook-2017-2018
Disability Rights Handbook. - https://crm.disabilityrightsuk.org/
You will find the answer in one (or both) of these books.

Failing that you could direct your client to their nearest CAB, and if you are charging your client make a donation to the CAB.

As far as I remember it is treated as capital, and is either disregarded, or excluded for 52 weeks.
But then I'm on a public forum, can post anything I like (per RB), and don't have a copy of DRH / CPAG here at home.

xylophone

https://www.citizensadvice.org.uk/work/problems-at-work/employment-tribunals-from-29-july-2013/employment-tribunals-valuing-a-claim/compensation-for-discrimination/employment-tribunals-discrimination-whether-any-welfare-benefits-you-have-received-will-reduce-your-award/

but what she wants to know is if any award will reduce her benefits?

Presumably you've tried CAB?

p00hsticks

Possibly the Compensation Recovery Unit could advise ?
https://www.gov.uk/government/collections/cru

TELLIT01

The way to resolve this is simple. The change of circumstances ie. the payment, must be reported to DWP. Make sure that a full explanation of the source of the capital is provided and let DWP decide how it's treated. Basically it will be capital, but I can't say with any certainty whether or not there is a disregard period.
One thing is crystal clear - failure to report it can potentially be treated as benefit fraud.

tomtom256

I can't see it being classed as a personal injury payout.

It would probably be treated as capital for benefit purposes.

A DWP DM is the only person that can decide based on the full facts of what the payment is actually for.

Honest_Frederick

Hi Everyone,


Many thanks for your responses. :-D


Firstly I'm an unpaid freelancer, not attached to any organisation, who endeavours to support people and pass on my experience and knowledge when I can.
But this question we both struggled with, and neither of us could find an answer to...


We both tried our respective CABs and several parts of DWP between us and found them wanting. :-(
Other organisations were struggling too - charities, ACAS, EASS etc.


So, I guess, as suggested, the DM will, ultimately, make their decision.
Whether it'll be the right decision or not, you can never really tell with DWP until you try ... ;-/