DRO and transitional payment

SD55

I had a DRO granted in January.
One of the reasons for this debt was that following a pip assessment I lost the DLA I had been receiving. Now after returning the motability car I have received the transitional payment of £2000.
Will they revoke the DRO because of this, I have no income at the moment and really can't cope with the stress of sorting this out again.

sourcrates

Hi,

This is what debt camel say about it :

A lump sum from benefits back-dating

These may sound large but they are often not a problem because this is treated as “income” over the period the back-dating relates to not “capital”. So the question is would you have exceeded the “spare income of £50” limit if you had been getting the correct amount of benefits all the time.

If the benefit is a claim for disability (PIP, DLA, AA) then an extra cost line for the disability would also be included in this re-calculation. So in 2018 the government is reviewing a lot of PIP awards – if you get a backdated sum for this, it shouldn’t make a difference to your DRO as any disability benefits you receive should be offset with an expenses line labelled “adult care costs” or something similar. the net effect on your “disposable income” is then zero.

fatbelly

This is the guidance from Citizens Advice:

If your client receives a lump sum of any of the following, this has to be reported to the DRO Team, but it will not lead to the DRO being revoked:
•Personal Independence Payment
•Attendance Allowance
•Disability Living Allowance
•Constant Attendance Allowance under the Industrial Injuries or War Pensions Schemes
•War Pensioners Mobility Supplement under the War Pensions Scheme or grants for the use of a vehicle
•Armed Forces Independence Payment

.

debt_doctor

Did you appeal the loss of the DLA? - Or in the first instance did you do a Mandatory Reconsideration?

How are you getting by with no income? Are you being supported by family?

DD