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ESA/ loss of income

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  • pope
    pope Posts: 416 Forumite
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    I understand that there is a high chance that ounce I receive my personal injury compensation the loss of future earnings will stop my contribution based ESA. 

    If all of my compensation including the loss of future loss of income is put in a trust. Will I still be able to carry on claiming ESA? And if ESA not possible to claim would I have any entitlement to UC?

    Thanks
  • huckster
    huckster Posts: 5,591 Forumite
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    edited 1 December 2025 at 1:44PM
    You will need to report to ESA once you have all information, provide all the documents to ESA and wait for Decision Makers to decide.

    I know you are looking for reassurance and DWP benefit guidance/legislation from this forum based on what you posted here and others may be willing to research and provide this, but you are still relying on ESA decision based on seeing all relevant documents.

    You will see from this link, containing 269 pages of ESA guidance, that finding the relevant bits would take time. DWP publish so much guidance that finding it can be challenging and may be why Decision Makers don't always get it right.

    dmg-ch-51.pdf https://share.google/pvCjnjwdiXd69C455


    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • marcia_
    marcia_ Posts: 4,123 Forumite
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    edited 1 December 2025 at 3:10PM
    pope said:
    I understand that there is a high chance that ounce I receive my personal injury compensation the loss of future earnings will stop my contribution based ESA. 

    If all of my compensation including the loss of future loss of income is put in a trust. Will I still be able to carry on claiming ESA? And if ESA not possible to claim would I have any entitlement to UC?

    Thanks
     You get your solicitors to set up a personal injury trust. You inform esa and uc you have the cash in trust. Upload the trust document to uc and you will be able to continue claiming benefits forever. 

    2026 wins - Parker Pen, American Sweets bundle, dish magic bundle

  • huckster
    huckster Posts: 5,591 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    marcia_ said:
    pope said:
    I understand that there is a high chance that ounce I receive my personal injury compensation the loss of future earnings will stop my contribution based ESA. 

    If all of my compensation including the loss of future loss of income is put in a trust. Will I still be able to carry on claiming ESA? And if ESA not possible to claim would I have any entitlement to UC?

    Thanks
     You get your solicitors to set up a personal injury trust. You inform esa and uc you have the cash in trust. Upload the trust document to uc and you will be able to continue claiming benefits forever. 
    Will drawing any money from the trust at any time affect benefits?
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • marcia_
    marcia_ Posts: 4,123 Forumite
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    huckster said:
    marcia_ said:
    pope said:
    I understand that there is a high chance that ounce I receive my personal injury compensation the loss of future earnings will stop my contribution based ESA. 

    If all of my compensation including the loss of future loss of income is put in a trust. Will I still be able to carry on claiming ESA? And if ESA not possible to claim would I have any entitlement to UC?

    Thanks
     You get your solicitors to set up a personal injury trust. You inform esa and uc you have the cash in trust. Upload the trust document to uc and you will be able to continue claiming benefits forever. 
    Will drawing any money from the trust at any time affect benefits?
     If you withdraw more than £6000 and leave it sitting in your current or normal savings accounts yes. Its best to just withdraw less than £6000 or if you are making a specific purchase and will spend it immediately. 
    You will get a cheque book with the trust account so can make payments that way. 

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  • huckster
    huckster Posts: 5,591 Forumite
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    As this thread relates to NS ESA, capital does not affect the claim.

    I was corrected by Yamor in a previous ESA thread that unearned income that is backdated, is counted against benefit at the time it relates to and not when it is eventually paid. So if any of the money is to compensate for previous loss of income, ESA will take that into account.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • marcia_
    marcia_ Posts: 4,123 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    huckster said:
    As this thread relates to NS ESA, capital does not affect the claim.

    I was corrected by Yamor in a previous ESA thread that unearned income that is backdated, is counted against benefit at the time it relates to and not when it is eventually paid. So if any of the money is to compensate for previous loss of income, ESA will take that into account.
     Todays post asked if there would be entitlement to UC. 

     

    2026 wins - Parker Pen, American Sweets bundle, dish magic bundle

  • pope
    pope Posts: 416 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    marcia_ said:
    pope said:
    I understand that there is a high chance that ounce I receive my personal injury compensation the loss of future earnings will stop my contribution based ESA. 

    If all of my compensation including the loss of future loss of income is put in a trust. Will I still be able to carry on claiming ESA? And if ESA not possible to claim would I have any entitlement to UC?

    Thanks
     You get your solicitors to set up a personal injury trust. You inform esa and uc you have the cash in trust. Upload the trust document to uc and you will be able to continue claiming benefits forever. 
    Hi 

    Yes I am going to ask my solicitor when the time comes to set up a personal injury compensation trust for me. But I still need clarification on the ESA.

    My ESA is contribution based so has no affect if have capital/savings. I received a certificate from my solicitor a little while ago mentioning that when my claim settles I will need to pay back all the ESA from the date I start receiving ESA to DWP this is because I am going to claim past loss of income. The deduction of the funds will be transferred over to DWP by the other party.

    This is the part I don't understand as part of my compensation I am going to recieve 3 years loss of future earnings payment. How is going to work will I have to put it into a Trust straight away and not wait for the 52 week grace period?

    When I put it in a trust will I have to tell ESA that I have received loss of future earnings ? The reason I say UC is because if things change and I need to transfer my ESA support group to UC WRAC will question that I have received 3 years worth of earnings?

    Sorry if I have not written it properly my writing grammar is not very good.



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