Incapacity question part 2

Trailertrash_2

Good morning all. I asked a question when I registered here and have had some help. However things are now progressing and I need the benefit of your advice.
I have finally been given medical [ill health] retirement from my job [30 years] and a lump sum pay out of £18k. We have paid of all our committments [see signature] and are left with £15k which we'd really like to keep. I have applied for Incapicity benefit and income support and have to provide a letter from my employer. I have this document which shows the £18k I have been paid.So my question is:
Since the £18k is over the upper limit of £16k will this affect my claim, or will the claim be allowed to proceed based on the £15k which we are left with?
Its all very confusing since I've never been in this position since I left school 40+years ago.
Any help would be appreciated.

TT

stazi

Your IS claim is unlikely to be payable, as you would have weekly 'tariff income' which would reduce the amount of IS payable.

For each £250 over £6k, you are assumed to get an income of £1pw -eg £7K = £4pw, £8K = £8pw therefore £15K will see an approx reduction in your IS of £36pw. IS would also have to look at the £3K you have already spent.

Any IS due after this deduction, would then have to be more than your IB entitlement for IS to be paid.

You may only qualify for IB, after IS have done their sums.