Death in service benefit and UC

just_asking_3

Hi all, my 56yro husband unexpectedly  passed away in January, his work paid a death in service benefit to me. 
I've been unable to work since (I was self employed) as I'm having panic attacks, and have since become disabled. 
I am signing on for UC to give me pension credits, but one of the staff has told me he believes death in service benefits can be disregarded as savings. He seems unable to give me a definitive answer though...does anyone here know? 
Thank you in advance. 

calcotti

You can’t claim UC if you have more than £16,000. I am not aware of a disregard for money received from a death in service payment.

You could apply for new style ESA (which is not means tested) provided you have a complete NI record for 2019-20 and 2020-21. 

If you claim both ESA and UC then the ESA is deducted from the UC.