income support and compensation money

[ilovesprouts]

I was in a bad accident in feb ,spent 9 weeks in hosp im likely to be getting a big pay out ,how much money can u have in the bank before income support stops !!

Capital of 6k plus will affect Income Support but I have a feeling compensation payments must be declared to the department how ever much they are. Google CRU, they may be able to recover some of your benefits from the payment.

You're better off asking CAB though. Bear in mind that DWP do random bank account checks now so I wouldn't not declare it.

cheers will deffo be getting more than 6k so check with thw dwp .

And bear in mind it has to be stretched out before you can claim again. The ex got 20 grand inheritance.. spent it, tried to sign back on and they won't let him without a receipt for everything he spent it on. That was 2 years ago and he still isn't allowed.

If it is over £16k your benefits will be deducted until you get to £6k.

Talk to your solicitor about a personal injury trust. Will cost about 500 quid to set up but ring fences your compensation from being counted as capital in calculating benefits entitlement.

Alternatively if you spend it within 52 weeks of receipt (or enough to take you under 6k threshold) your benefits won't be affected.

Your solicitor ought to have advised you on this.

Inheritance is different to compensation. There are specific rules for compensation.

Good to know.. cheers.