Industrial Injury Disablement Benefit (IIDB) and UC

Invdisability

Hi, I only found out I was entitled to IIDB in 2021 from an accident I had 30 years ago.

I have been awarded a life award at 40% disabled. This currently pays four weekly at £332.14 Shame they could only back date it 3 months and not 30 years.

I also receive UC, LCWRA, & Housing benefit.

What I don't understand is why they Deduct my IIDB in full from my Universal Credit?

If I was working and earning this 332.14 then they would not take a certain amount into consideration and then deduct 55% per pound over the allowance?

Also if I was earning above the benefit threshold then I would still get my IIDB in full and tax free. This does not make sense?

Will I still get a work allowance if I start work or not? I only get 8.00 per month UC after the IIDB is deducted pound for pound.

I may as well not claim the IIDB.

The only positive of this is I think I will get IIDB and my state pension without them affecting each other when I retire in 17 years. And I still get IIDB if I move abroad to retire.

poppy123456

IIDB is not classed as earnings, it's unearned income and for this reason it reduces your UC £1 for £1. The same rules applied for the old legacy benefits such as Income Related ESA, JSA and Income Support.

If you start work, you will have the work allowance but it's not an additional element. It means you can receive a certain amount of earnings each month before the 55% deductions apply. As your UC includes help with the rent then your work allowance will be £379/month.

Looking at those figures and what your UC includes. If your IIDB is 40% then that's £83.04/week, which is £359.84/month which is what will be deducted from your UC. For this reason i don't understand why your UC is only £8/month. The LCWRA element alone is £390.06/month, standard allowance (assuming you're single?) £368.74/month plus your housing element on top. Something isn't right here.

Are you also claiming New style ESA as well? is your UC a single claim or claiming with a partner that works? are there any other deductions from your UC for anything?

Invdisability

Let me make it a bit clearer. I may have misled you. See capture of statement. This might be a bit deceiving as My Assessment Period is 27th March to 26th April so it's based on old rates.
If you take my Single person UC Payment £368.74 and deduct my IIDB £359.84 it only leaves £8.90. Yes I also get the LCWRA £390.06 and £599.99 towards my rent.

Also if I start earning will this stop being deducted when I have over £8.90 in deductions or will it start to eat into my LCWRA?

poppy123456

UC is one benefit made up of many different elements. All the elements you’re entitled to make up your maximum UC entitlement. 

When you said you were only receiving £8/month that’s not actually correct because the IIDB reduces your whole UC entitlement and not just part of it. 

If you work then you’ll be entitled to the work allowance. This means you can receive a certain amount of earnings each month before any deductions apply. 

As you claim for help with the rent your work allowance will be £379/month. Therefore anything over this will reduce your UC by a further 55%.

Do also be aware that if the work you do contradicts the reasons why you’re claiming LCWRA then it could go against you at your next review. You must also report the changes if you do start working.