Contributions based ESA, Universal Credit and medical compensation payment / Trust fund

samk777

How would a medical compensation payout affect contributions based ESA? How about for Universal Credit (presuming the ESA will end and I will have to apply for UC because of proposed changes).  How would any Trust fund work if the damages go into that and not directly to me?

Thank you

8dayweek

Contributions based ESA isn’t affected by Capital. 

ESA(C) won’t be migrated to UC - it only replaces income-related benefits. 

For UC purposes, Personal Injury Payments are disregarded (not taken into account) for 12 months from the date you receive it. After the 12 month disregard period ends it’s taken fully into account as Capital, with the normal rules on Capital limits applying. If the Personal Injury Payment is put into a trust within the 12 month disregard period, it will continue to not be taken into account after the 12 month period expires. 

TimeLord1

What income-related payments are you receiving to cause the migration? Contribution-related ESA remains outside of universal credit or becomes New Style ESA if you are asked to migrate.