Pip back pay and car replacement money

Dollyday123

Hi everyone, I’m currently up stressing over savings threshold of means benefits. I experienced being involved in a really bad RTA a few weeks back and it resulted in my car being written off. Three days later I had pip reassessment medical, that I been waiting for since 2021. Which was continuously extended due to DWP backlogs, so I didn’t want to cancel. Anyhow good news I was awarded higher pip, after nearly two years thinking it was going to be taken from me. However much to my surprise they backdated it back to original review date and I received over £5679 in back payment in my bank. However car insurance said my car was a write off and then paid me £4950 market value. These two amounts take me over £6k saving threshold, I’m obviously going to replace the car asap. However I’m meantime whilst looking will this amount stop or reduce my means tested benefits ie housing benefit, esa etc ?

should feel happy but I’m now sick with worry.

can anyone advise on this and what I should do?

thanks 

Adeline

Did you already have any savings or capital @Dollyday123? Backdated PIP is normally disregarded as capital for 12 months.

poppy123456

The money you received from PIP is disregarded for 12 months so without this if your savings are less than £6,000 then you don't need to do anything.

Dollyday123

Thank you,  I did have capital, before these two big payments of £4,300. As always keep emergency fund, the car insurance writes off payment and pip back pay wasn’t expected. Do you think I should call DWP and housing benefits, to tell them?