We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

On universal credit but what if I win compensation claim?

crunch99
crunch99 Posts: 30 Forumite
Part of the Furniture 10 Posts
edited 1 December 2019 at 7:35PM 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

  • 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
    Part of the Furniture 10,000 Posts Name Dropper
    edited 1 December 2019 at 7:52PM
    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
    Part of the Furniture 10 Posts
    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
    Part of the Furniture 10,000 Posts Name Dropper
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.7K Work, Benefits & Business
  • 603.1K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.