compensation lump sum while on benefits, will it affect my income support? plz help

Scarlett1 wrote:

mmm not sure about your disability benefit, but when on income support you are only allowed £6,000 in savings, housing benefit £12,000, so you might find you will lose all benefit entitlement and will be expected to live off you compensation

dont quote me I could be wrong, hopefully someone will come along who is in the know

Yep that's what I was going to say!!! It won't affect the disability benefit but will the income support as it is means tested.

Scarlett1 wrote:

so you might find you will lose all benefit entitlement and will be expected to live off you compensation

it will effect your IS but not your DLA - as £40,000 is alot of money, in comparason with IS, you will have to live of your £40k plus DLA - of which, imho is more than enough to live of

DWP - Advisers - Compensation Recovery Unit: About the ...
The DWP should be notified by your solicitor of your compensation winnings and should have passed to the DWP the amount of compensation relating to issues you have already been compensated for through DWP benefits.
They don't like the idea of you being compensated twice for the same occurence.
Where they aren't able to get their hands on your money first, (because the compensation wasn't related to your disability) they will still get to hear of it and buying property anywhere will be regarded as INTENTIONAL DEPRIVATION OF CAPITAL and you will be treated, as far as the DWP are concerned, as if you still had that money. It will be termed NOTIONAL CAPITAL and it will gradually decrease but given your allowed £6000 the remaining £34000 will take at long time to depreciated at DWP Notional income and capital
rates.

dawn7 wrote:

hi ted
i was told that the dss will allow you to have compensation for 1 year before they stop your income support etc is this true, thancks for all the replys,

I cannot see any reason at all why that should be the case.
The day you have in your bank account 1p more than the £6000 your means tested benefits will be affected and 1p more than 16000 will end means tested benefits entirely.
There is no concession for a year for compensation payments.
The only time when excess capital can be ingnored is where the DWP themselves have made and error or an appeal has made an award which has meant your benefits have been backdated a long time. In this case this backdated benefit money is disregarded for 12mths and you can spend it how you like without keeping receipts.

mclaren wrote:

so it is the scarlett pimpernail

I shouldnt think so - that was a bloke!