How to spend or save compensation money without affecting means tested benefits

flatmovebenefits
flatmovebenefits Community member Posts: 3 Listener
in Employment and Support Allowance (ESA)
If I received monies (Est to be £10,000 to £50,000 not settled yet) for injury compensation, what can I spend the money on within 52 weeks where it would not be considered savings or assets that would affect my means tested benefits such as ESA and housing benefits, if I did not want to establish a trust to told the money in?  
Law Centre (NI) Legal Information Briefing (lawcentreni.s3.amazonaws.com)

Comments

  • calcotti
    calcotti Community member Posts: 10,005 Championing
    edited July 2023
    We would be able to put the money into a trust which will then allow it to be disregarded definitely. See section 4 of the article you have linked to. It is often the best often.

    If you choose to speak the money quickly the DWP will have to decide whether they think you have derived yourself of capital to maintain/increase your benefits. For your existing benefits the rules are not rigid, DWP have to decide if the expenditure is reasonable. 

    Your approach may be difference if you yet £50,000 rather than £10,000. 

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