Ex-Gratia vs JSA payments?

Madison31773

I am currently in receipt of income based JSA but am aware that in the near future an ex-gratia payment of about £12k will be made from an ex-employer.
If and when the payment is received, do I have to declare it to the DWP?

Also, whilst on JSA a close family member has been paying my credit card bills. I had intended to reimburse them from the ex-gratia payment but am unsure if this is classified as a debt/dispersment.

Any insight or advice on this would be greatly appreciated!

Mersey_2

Yes, you're best declaring it as it'll in most likelihood take you over the £6,000 lower threshold of assets re means tested benefits. Although eg if you have an overdraft of 'say' £3k and other debts, it may only take you over temporarily so may not affect future entitlement.

TELLIT01

It's not a case of 'best declaring' which suggests it's optional. You must inform JSA when you receive this money. Care needs to be taken about paying money to a family member if there is nothing in writing to say that they would pay your credit card bill and you would reimburse them on receipt of the payment from your former employer. If there is nothing formal in place, it's entirely possible that such a payment would be treated as deprivation of capital.

Mersey_2

Mersey wrote: »

Yes, you're best declaring it as it'll in most likelihood take you over the £6,000 lower threshold of assets re means tested benefits. Although eg if you have an overdraft of 'say' £3k and other debts, it may only take you over temporarily so may not affect future entitlement.

The reason I said "best declaring" should be clear from the rest of the sentence - you need to if any gift takes your assets over the £6,000 lower threshold.


But, of course, I've known cases where this isn't the case eg if a person is left £10k but has debts of £5k, then they only have assets of £5k on the same day. (As overdrafts and other debts repayable on demand are deducted from any gross assets to give the figure which is relevant)