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  • FIRST POST
    • Samarah86
    • By Samarah86 11th Mar 18, 6:08 PM
    • 6Posts
    • 1Thanks
    Samarah86
    Benefits after compensation lump sum
    • #1
    • 11th Mar 18, 6:08 PM
    Benefits after compensation lump sum 11th Mar 18 at 6:08 PM
    Hi I've found lots of info regarding compo whilst on benefits but I need to know what happens if u had compo but then needed 2 claim benefits.
    I was awarded 20k 4 months ago and because my husbands wages were paying the bills we spent the compo money on debts, the new baby, and moving to a new home (rented) that would be better for the baby and our 4.5yo (ie not mould infested, damp and cold).
    There's approx 2k left but this morning my husband has come home from work and said that his boss won't have any hours for him after this month and has to let him go (his last day will be the 31st march). We we be allowed to claim benefits or will they say its notional capital on the whole 20k?
    Thanks
Page 1
    • pmlindyloo
    • By pmlindyloo 11th Mar 18, 6:25 PM
    • 11,581 Posts
    • 13,486 Thanks
    pmlindyloo
    • #2
    • 11th Mar 18, 6:25 PM
    • #2
    • 11th Mar 18, 6:25 PM
    Hi I've found lots of info regarding compo whilst on benefits but I need to know what happens if u had compo but then needed 2 claim benefits.
    I was awarded 20k 4 months ago and because my husbands wages were paying the bills we spent the compo money on debts, the new baby, and moving to a new home (rented) that would be better for the baby and our 4.5yo (ie not mould infested, damp and cold).
    There's approx 2k left but this morning my husband has come home from work and said that his boss won't have any hours for him after this month and has to let him go (his last day will be the 31st march). We we be allowed to claim benefits or will they say its notional capital on the whole 20k?
    Thanks
    Originally posted by Samarah86
    What kind of compensation is it?
    • pmlindyloo
    • By pmlindyloo 11th Mar 18, 6:28 PM
    • 11,581 Posts
    • 13,486 Thanks
    pmlindyloo
    • #3
    • 11th Mar 18, 6:28 PM
    • #3
    • 11th Mar 18, 6:28 PM
    Plus, check whether you are in a full service universal area.

    https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/
    • pmlindyloo
    • By pmlindyloo 11th Mar 18, 6:50 PM
    • 11,581 Posts
    • 13,486 Thanks
    pmlindyloo
    • #4
    • 11th Mar 18, 6:50 PM
    • #4
    • 11th Mar 18, 6:50 PM
    The above information would be good to know but deprivation of capital is when someone knowingly deprives themselves of capital in order to obtain or get more benefits.
    Based on what you have said it would be extremely difficult to prove that your husband knew he was going to lose his job and you would need to claim benefits so the answer should be 'no you haven't deprived yourself of capital'.

    If you can answer the questions above (different answers for different benefits) then there may be more reasons why you haven't deprived yourself of capital.
    • Samarah86
    • By Samarah86 11th Mar 18, 7:06 PM
    • 6 Posts
    • 1 Thanks
    Samarah86
    • #5
    • 11th Mar 18, 7:06 PM
    • #5
    • 11th Mar 18, 7:06 PM
    Hi thanks for the reply.
    The compensation was for medical negligence. Basically I was sterilised because a) I have a genetic condition that I passed to 2 of my 4 'already here' children and 50:50 chance of passing it on to another baby. B) because of the condition my 2 kids have multiple health concerns/disabilities and c) pregnancy itself is extremely painful for me and renders me immobile from approx 20 weeks. However, the filshie clip on 1 side was found to be placed incorrectly resulting in my current pregnancy.
    Hope that helps.

    P.s my husband had an email from his boss asking if hubby wanted more hours just after Xmas, which hubby accepted, so could easily prove that we had no knowledge of him becoming unemployed.
    X
    • Samarah86
    • By Samarah86 11th Mar 18, 7:10 PM
    • 6 Posts
    • 1 Thanks
    Samarah86
    • #6
    • 11th Mar 18, 7:10 PM
    • #6
    • 11th Mar 18, 7:10 PM
    Sorry missed the 1 about universal credit. My are isn't changing over until august this year so would need to claim income support (due to daughters disablities) or jsa. Also housing benefit and council tax benefit.
    My hope is that hubby will have a new job to to before the 31st thou
    X
    • Alice Holt
    • By Alice Holt 11th Mar 18, 7:53 PM
    • 2,160 Posts
    • 2,531 Thanks
    Alice Holt
    • #7
    • 11th Mar 18, 7:53 PM
    • #7
    • 11th Mar 18, 7:53 PM
    Just to add that I would be in agreement with pmlindyloo that it would be very difficult for the DWP to claim deprivation of capital. One key element of D of C is that there has to be intention to claim or increase benefits. That would not have been your intention when spending the money.

    Is your disabled daughter in receipt of DLA? Is a DLA claim a possibility?
    Sounds like a JSA claim (contribution based?), HB, Child Tax credits, Council Tax reduction may be the route to go.

    It could be worth a visit to your local CAB / advice centre for a benefits check, and some info as to whether child's DLA is worth considering:
    https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/disability-living-allowance/before-you-claim-dla/check-if-you-can-get-dla/
    • Samarah86
    • By Samarah86 11th Mar 18, 8:25 PM
    • 6 Posts
    • 1 Thanks
    Samarah86
    • #8
    • 11th Mar 18, 8:25 PM
    • #8
    • 11th Mar 18, 8:25 PM
    Hi alice, yes my daughter gets DLA (Middle care currently but being reviewed for mobility element wen she turns 5).
    Thanks 4 the replies I was getting a bit worked up as only have 3 weeks til my due date so this has come at the worst possible time.
    X
    • Alice Holt
    • By Alice Holt 11th Mar 18, 8:45 PM
    • 2,160 Posts
    • 2,531 Thanks
    Alice Holt
    • #9
    • 11th Mar 18, 8:45 PM
    • #9
    • 11th Mar 18, 8:45 PM
    Are you receiving carers allowance?
    • Samarah86
    • By Samarah86 11th Mar 18, 10:25 PM
    • 6 Posts
    • 1 Thanks
    Samarah86
    Not at the moment as hubby is earning more than 116 a week. I'm entitled to carers credits but get those anyway because I claim child benefit for her
    X
    • patman99
    • By patman99 11th Mar 18, 11:25 PM
    • 8,206 Posts
    • 9,673 Thanks
    patman99
    I never knew CA was means tested. My oh gets CA for looking after a family member and I get way more than 116 per week.

    Anyway, your oh would be entitled to cont-based JSA for the first 6 months regardless. It is what happens after this that needs to be considered. Mind you. Depending on your OH's trade, he might just walk straight into another job (my fingers are crossed for him on this).
    Never Knowingly Understood.

    Member #1 of 1,000 challenge - 1000/ 1000 (that's 100%)

    3-6 month EF 631.65/3600 (that's 10 days worth)

    Do you/your spouse earn less than 197 p/w ?. Fill-in Form R85 and get your Bank interest Tax free.
    • Ames
    • By Ames 11th Mar 18, 11:45 PM
    • 17,313 Posts
    • 30,493 Thanks
    Ames
    I never knew CA was means tested. My oh gets CA for looking after a family member and I get way more than 116 per week.

    Anyway, your oh would be entitled to cont-based JSA for the first 6 months regardless. It is what happens after this that needs to be considered. Mind you. Depending on your OH's trade, he might just walk straight into another job (my fingers are crossed for him on this).
    Originally posted by patman99
    CA is based on the claimants income and hours, not household finances.
    Unless I say otherwise 'you' means the general you not you specifically.
    • kingfisherblue
    • By kingfisherblue 12th Mar 18, 6:41 AM
    • 7,743 Posts
    • 16,901 Thanks
    kingfisherblue
    Not at the moment as hubby is earning more than 116 a week. I'm entitled to carers credits but get those anyway because I claim child benefit for her
    X
    Originally posted by Samarah86
    It doesn't matter what your husband is earning. If you fulfil the requirements of CA, you can claim it. You need to be caring for at least 35 hours a week, earn less than 116 (your own earnings, not your husband's), not be a full time student. There are a couple of other requirements, bt those are the main ones.
    • Samarah86
    • By Samarah86 12th Mar 18, 8:18 AM
    • 6 Posts
    • 1 Thanks
    Samarah86
    It doesn't matter what your husband is earning. If you fulfil the requirements of CA, you can claim it. You need to be caring for at least 35 hours a week, earn less than 116 (your own earnings, not your husband's), not be a full time student. There are a couple of other requirements, bt those are the main ones.
    Originally posted by kingfisherblue
    Really?? I was not aware of that. I don't have an income at the moment. I will look I to that today. I assumed ca was like other benefits and included anything that a partner was earning.
    Thanks for the info
    X
    • pmlindyloo
    • By pmlindyloo 12th Mar 18, 10:07 AM
    • 11,581 Posts
    • 13,486 Thanks
    pmlindyloo
    Yes, you would be able to claim Carer's Allowance under your circumstances.

    Your husband should apply for JSA. You can be added to his claim. It sounds as if he would be eligible for contribution based JSA but when you complete the application make sure you tick the box to be assessed for both contribution based and income based.

    Once your claim for CA is processed then this amount would be treated as income and deducted from your income support. However, a carer's premium would be added (about 34 per week) and you would receive your CA as a separate payment. You CA can continue when your OH finds a job.

    You can also claim housing benefit and council tax reduction (form from your council or check your local council's website as you might have to apply online or by telephone)

    If you are currently receiving tax credits then you need to inform them of the change of circumstances - you will receive child tax credits whilst you are on JSA.

    You can check out your entitlements on a benefits calculator - www.turn2us.org.uk for example

    I am pretty certain that your personal compensation would be disregarded for 52 weeks when on JSA

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/649901/dmgch29.pdf

    29509

    and I also believe this would be retrospective to the date you received it.

    Coupled with your evidence that your OH was unaware that he was going to lose his job this, in my opinion, would not consider spending the compensation as deprivation of capital.

    It might be sensible to find evidence of your compensation and email/evidence of your OH's work circumstances and keep them safe. (just in case they query it)

    I am sorry to hear of your past medical difficulties and wish you and your family well.
    • poppy12345
    • By poppy12345 12th Mar 18, 12:21 PM
    • 2,843 Posts
    • 2,806 Thanks
    poppy12345
    The quickest and easiest way to apply for carers Allowance is online. Claims can take between 8-12 weeks depending on backlog.
    https://www.gov.uk/carers-allowance/how-to-claim
    • patman99
    • By patman99 12th Mar 18, 7:15 PM
    • 8,206 Posts
    • 9,673 Thanks
    patman99
    \if successful, any claim for CA will be back-dated to the date you applied.
    Never Knowingly Understood.

    Member #1 of 1,000 challenge - 1000/ 1000 (that's 100%)

    3-6 month EF 631.65/3600 (that's 10 days worth)

    Do you/your spouse earn less than 197 p/w ?. Fill-in Form R85 and get your Bank interest Tax free.
    • D_M_E
    • By D_M_E 12th Mar 18, 9:44 PM
    • 1,559 Posts
    • 63,594 Thanks
    D_M_E
    Based on personal circumstances, I can confirm that

    1. Compensation as you describe is disregarded for benefit purposes for 52 weeks from the date of receipt of compensation,

    2. You are entitles to claim CA based on your income alone, but deductions will be made for this when a JSA claim is successful, and

    3. You don't have to worry about deprivation of assets - as pointed out above, you had no knowledge of reduced family income and could reasonably have been expecting your husband's income to not vary by much.

    One thing to note is that CA is taxable, if I remember, and has to be declared as income but this needs to be checked - it's a while since I was in receipt of this.
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