Lump sum ADP army

[SploshMeBackwards]

I'm posting on behalf of my sister as she doesn't do mumsnet 🤣
Anyway, she's currently in receipt of benefits (ESA - Income related, CTC, CB, HB and CT) she has one child.

Her ex husband died and she is now entitled to a one off taxable lump sum of his army pension (Adult dependent pension) it's around £20,000! Her child will also be getting monthly payments from the pension into a savings account she wishes to set up for him for when he's 18.

She is currently stressing that this money is going to affect her benefits. I know she's going to clear alot of debt with this money and make her life easier due to her medical issues she currently has.

Anyone know anything about this please and can advise?

Speak with Citizens Advice. They are best placed to answer benefits questions

Yes it may affect her benefits. She needs to let DWP know about it and check with them before she spends it. It may be fine to clear debts but she needs to speak to them first otherwise she may fall foul of the deprivation of capital rules. I would also say for her to keep receipts of everything she spends on, somethings will be ok but others wont.