to wonder if getting a big insurance payout affects your benefits?

[MorallyBankrupt]

Someone I know has been in an RTA... they will be getting a big payout but will be putting the money into an account in their DD's name as apparently 'the DSS' check their accounts...

Am I right in thinking their benefits would be cut if they declared this big payout? It sounds seriously dodgy to put the money is their DD's name doesn't it?

They'd be daft to think they can hide it from the DWP. The insurance co will advise the DWP that the claim has been settled once the payment goes through. They can ask for the payment to be made payable to whoever they like - the ins co will issue payment once they get a signed mandate allowing them to. But, the DWP will know when the claim is settled and can easily send someone out to check if the recipient has declared what they now have in savings. The ins co will be paying the DSS back for all the income related benefits paid while the claim is ongoing so they'll struggle to keep it secret

Here's a DWP guide. The amount of compensation payable may be adjusted if the person affected has claimed certain benefits since the accident. It is very likely all this will be thrashed out before anything is paid over.

Hmmmm I've read through the PDF. There is no way they will be selling the DWP that they have the money. I might ring the hotline for advice. I really hate the idea of people defrauding the state.

They're also defrauding their own child. That's about as fuckwit as it gets. I'd shop this person in writing, personally.

You can have 8.5k in savings before it affects your benefits.

Im not sure if it does as its compensation but I could be wrong.

meditrina, the only aspect of the claim that will be adjusted is anything related to earnings during the period the injury affects the claimant's ability to work. The actual award for the injury itself is not reduced. If they were on benefits before the RTA, the claim won't be adjusted at all. The benefits paid while the claim is investigated and negotiated are re-paid to DWP. If the claimant was working, but then receives benefits while unable to work as a result of the injury, any claim for lost earnings is adjusted i.e. the amount of benefits paid are deducted from the LOE claim.

If they are trying to hide the money from the CSA, please, PLEASE, shop them. Can't abide people who do this.

Just asked dh if you could get an insurance claim paid out to someone else and he said that it would be very unusual and would be a red flag to the company to suspect money laundering.