UC & compensation

[KCYA]

Hi all,

I've had a no win, no fee negligence claim against the NHS for nearly 5 years due to something that happened when giving birth. An agreement has finally been reached and it looks like I may receive around 18K.

Does anybody know the legalities around compensation and UC? I know your UC stops when you have 16K in your account but would that still happen in this situation?

I've tried to have a look online but I can't find out any solid information so I thought someone may have had a similar experience on here. Thanks!

I believe personal injury compensation payouts are exempt from being counted as capital for a year.

If it’s personal injury compensation it will be disregarded data.parliament.uk/DepositedPapers/Files/DEP2025-0364/026._Capital_disregards-Guidance_V30.0.pd.

UC is only 6k now. Old system was £16k

You can put into a specific "trust" its something I have been looking into as am expecting compensation in next year or so. It needs to be run by two people for bank to release funds but its completely legitimate.

Waiting on the benefit bashers to arrive.....

Because it's personal injury you can have it put into a trust and it won't be classed as savings. You only have a certain amount of time to do it, can't add to it and can't use it for day to day living (iirc). Ask a solicitor.

The link takes me to an error page, do you happen to have another link please?

& @GeorgeEdwardsMum

I did consider putting it into a trust but what’s the point? I’ve gone through hell and my compensation will just be sitting in a trust that can’t be touched. Seems incredibly unfair

It’s just missing an “f” on the end - https://data.parliament.uk/DepositedPapers/Files/DEP2025-0364/026._Capital_disregards-Guidance_V30.0.pdf

No, you are misunderstanding. Its a personal injury trust, different to trusts that we think of. Granted you cant just do a bank transfer as and when but it protects the money and allows you to spend it fairly freely.

Apparently it should be exempt for 52 weeks for UC if not in a trust but reading it, they can request to confirm what youve spent the money on if you deplete it rapidly. (Just like the debt consolidation loan ive just got....I have to prove what ive spent the loan on, including stuff which would be under the £6k limit. Wish id never told them now, it went in one day and was well below £3k 2 days later.