Universal credit and compensation payment

[Awiane]

Hi
Im receiving a payment of 18000 pounds, when I tell UC will they stop my Uc completely or after 52 weeks

If you receive 18k, im sure the payments would stop immediately, not after a year...

Why would they only stop after a year?

They stop paying as soon as you receive the £18.000. Why would you think after 52 weeks?

Depends upon whether it's for personal injury/in a personal injury trust or something else and whether you need to spend any of it for good reason straight away.

A solicitor, such as the one handling your compensation claim, would be better to advise you than randoms on Mumsnet.

Depends what the payment is for. Personal injury compensation is disregarded for 12 months

Yes it will completely stop and you will not be entitled to a penny even if you have dc. It has happened to me and im living of the lump sum of money. im also out of work as im a full-time carer. its really shit tbh and actually sorry I got this money. oh and dont think of blowing it on hols and luxuries as you will be penalised for doing that as they'll see it as getting rid off assets just so you can claim. it has to be used for living expenses.

All depends what the payment is for. Some payments / compensation are disregarded

They will stop paying, however if you tell them you're in the process of buying a house and this is the deposit, I think you get some leeway - however, I think it is only for that purpose so if you're not using it as a house deposit... benefits will stop until you're under 16K.

Be aware that if you spend it rapidly, they are likely to look at what you bought/why - so for example, if you give money to friends/family, if you buy a load of unnecessary stuff like two microwaves or a few tvs etc (ie to either sell on or give to friends/family), they'll view that as you intentionally getting rid of the money in order to claim again.

So make sure anything you buy is evidenced (no cash buying) and sensible.

mine was an inheritance.

Exactly so it wasn’t disregarded. It’s best to find out the information from the op first so the correct advice can be given

Why are you sorry you got the
money? Why should they still give you money when you have a substantial amount there to use?

Surely you have over 2k worth of debt to pay off straight away?? You will need to be able to prove this.

Otherwise you will completely lose your uc! xx

That's also not strictly true. A client of mine inherited a smallish sum of money. Spent it on two holidays. Crucially, wasn't aware of the deprivation of capital rules. DWP allowed it and didn't stop her benefits.

Because the plans to waste it on holidays and continue claiming UC was scuppered 😅

Because it has come at a really bad time for me as I am unable to spend and enjoy it like id wish to because of my current circumstances. like I said im a full-time carer of a terminally ill parent. don't want to go into too much detail on here. But if it had come to me at a different time it would have been lovely. Its not a huge life changing amount but has taken me over the UC threshold. I am very greatful the person thought enough of me to leave me something which is lovely.

Op you need to let UC know about the money. It may be able to be disregarded for a period of time. Explain to them what the payment is for.

No not at all, love how people like to judge total strangers on here without knowing anything about their lives.I'd only been claiming UC for 1 year after coming out of work to care for my parent whos is now dying of terminal cancer.

If the payment was compensation for personal injury it should be disregarded. It will be disregarded for 52 weeks initially, but if you want it to continue to be disregarded you will need to put it in a personal injury trust, so you should speak to a solicitor about that. Look for somebody who specialises in Court of Protection and/or PI Trust matters.

Surely you can't have £18k sat in the bank and still be eligible for tax payer support? I have nothing like that and don't even get child benefit!

Yea depends what it’s for. Personal injury compensation is to
cover costs you’ve had and are expected to our in the future. It’s different from cash which can be used towards bills.

The same with insurance payout for car crashes or damaged buildings - they are to cover costs and so if you received 50k to rebuild a house you wouldn’t be expected to live off that and not fix the (for example) fire damage.

Some payments are disregarded for 12 months.

I got a large amount due to backpay owed from DLA and some elements from UC and nothing happened as it fell within payments which are disregarded for 12 months.

Would you like a crippling disability to go with your compensation? Fml try to think before you speak crime victims get compensation medical injuries serious car accidents its compensation for a loss of some kind not a windfall

It's not just sat in the bank in that case then is it, presumably its being used to support those additional costs so totally fair enough. It's more if someone gets an £18k inheritance I was wondering about, presumably UC ceases immediately in that case.

I do have a disability myself (epilepsy) so am aware of how difficult life can be and the limited choices some people with a disability can face.

Really ? That’s interesting

It’s hardly hunting to conclusions when you’ve already stated that was your intention clown shoes!