Personal Injury payment 52 week rule

Spoonie_Turtle

calcotti said:

Spoonie_Turtle said:

Unless I'm missing something, if it's disregarded then surely it makes no difference to any benefits and the person can do whatever they want with it during that time? Disregarded means from a means testing point of view it basically doesn't exist - it's not taken into account at all, for that period. Deprivation of capital and reduction of benefits would only come in if they were still over the £6000 threshold after the period of disregard. Or am I being dense?

Not sure about that. I think it’s logical and tend to agree but if OP wants certainty they would need to confirm with authorities. Think for example of somebody who is not claiming benefits but gives away capital to somebody else, that can be treated as deprivation of capital if they later claim benefits. 

True.    

avk64

Thank you all for the replies. It was very good information. I will let the person know to contact DWP as soon as money is received just to be on the safe side. To be honest some of the debts came around as a result of the accident and not having support for transport etc so there would be some legitimate reasons to pay off the debt in the first year. I guess, keeping a track of all expenses will be a smart idea for the duration. 
Thanks again!

calcotti

avk64 said: I guess, keeping a track of all expenses will be a smart idea for the duration. 

And keep receipts. Then if any questions are raised about how money was spent evidence can be provided.
I can’t see that paying off bills arising from the injury could be seen as a problem given that the purpose of a compensation payment is to help with those costs.