Mumsnet Talk

Hello,
I'm not a regular poster but hope you can help me. Sorry if title is misleading couldn't think how to word it..
My DH and are are about to be made an offer re compensation for injuries and loss of income folling a car accident last year.
Since the accident my DH has been unable to work and I have had to give up work to become his carer meaning we are currently living on state benefits, income support and housing benefit etc.
Our solicitors have warned us that a lump sum payout may affect our entitlement to benefits. Does anyone know what the amount would need to be to affect our entitlement.
We have not had an offer yet but suspect it to be in the region of 5-8k. Would this reduce our hb and tc?
Thanks

Savings affect HB but only anything over 6k.

If any of the benefits were paid due to medical reasons re not being able to work you may find that these ones have to be paid back.

You should ask your solicitor about putting the compensation into a personal injury Trust - immediately, before the money is passed from the insurers to you. That way it will not be taken into account when calculating benefits.

Your solicitor will write to the DWP to see if they wish to reclaim any benefits that was received as a result of being incapacitated due to the injury. If so, your solicitor should get the insured's insurance company to agree, as part of the settlement, to cover any repayments to the DWP.

You also need to notify the DWP that you have the compensation is held ina personal injury (discretionary) trust.

That's asuuming you don't just want the compenation paid to you so you can spend it now. If you receive it then anything over £6K will reduce your HB and IS on a sliding scale and £16K in 'savings' could reduce or render you ineligible for certain benefits. That's why it's best to put it in trust and forget about it.