Industrial injury payout, will it affect benefits?

lucy1967_2

My 65 year old Father was injured in work 5years ago, he has been struggling to work since. He was a bricklayer and has been since he left school. The injury stopped him from doing manual/physical work but he’s struggled to find any alternative work as his age is against him.
He finally received an out of court settlement (but the employer still would not admit liability). 

He is worried that the government will want money from him to repay Jsa and sickness benefits (can they?).
He also has an unsecured loan and mortgage that he could not repay due to not working and was paying a small agreed amount on both.
We have told him to pay both off so its not hanging over him, is that a good idea?
The mortgage which he says he doesn’t want to pay off as he thinks they can take his house off him if he owes money to the government.
We are going around in circles with him as to what to do can anyone advise?

LilElvis

You will get better advice if you post on the dedicated benefits board: https://forums.moneysavingexpert.com/categories/benefits-tax-credits

middleclassbutpoor

I can't help give clarity around how the payment impacts the benefits. However the payment should be reported so they can advise on this. 

If the benefit is impacted because of a payment like this, it usually results in the payment stopping as it is no longer deemed needed. 

In theory there could be a seizure of property but that would be extreme and usually only as a result of criminal activity i would imagine and/or in an action of last resort.  You therefore should have confidence that providing you have notified the relevant depts of the payment, you will be advised whether payments will continue/reduce/stop.  

Once you know this, you will know if your advice to repay debt is correct. I would say that assuming income is still OK then he should repay it but you need to make that decision once you know what the impact of the lump sum is.