On universal credit but what if I win compensation claim?

crunch99
crunch99 Posts: 30 Forumite
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edited 1 December 2019 at 8:35PM in Benefits & tax credits
Currently on universal credit but have a tribunal case for discrimination of disability - mental health. I could get max reward of 8000 but how does this effect my UC benefits? I have read that if you win a personal injury claim you can open a trust with a bank so you still get your benefits but claim compensations is protected.but can't find anything on discrimination tribunal case and protecting.Compensation. anyone have any knowledge?

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post I've been Money Tipped!
    https://www.the-compensation-experts.co.uk/common-questions/will-compensation-claim-affect-benefits/
    You would be allowed to spend some or all of the money,bearing in mind deprivation of capital rules, is there a reason why you want to put the money into a trust and not use it to support yourself?
  • calcotti
    calcotti Posts: 15,696 Forumite
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    edited 1 December 2019 at 8:52PM
    Even if you kept all £8,000 without protection, if this is your only capital, it will only have a modest impact on your UC. The first £6,000 is ignored. For everything over £6,000 there is a deduction of £4.35/month for each £250 or part thereof. £8,000 would therefore result in a deduction of £34.80/month.

    I doubt that it is worth the effort of creating a trust for a sum of this size (but I may be wrong).
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • crunch99
    crunch99 Posts: 30 Forumite
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    I desperately need to move out of the disgusting rented flat I am in, get my car repaired/replaced and have a baby on the way so any surplus cash I can get is a blessing.
  • calcotti
    calcotti Posts: 15,696 Forumite
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    crunch99 wrote: »
    I desperately need to move out of the disgusting rented flat I am in, get my car repaired/replaced and have a baby on the way so any surplus cash I can get is a blessing.
    Sounds as if you’ll very quickly be below £6,000 which will not affect your UC at all.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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