UC HELP ASAP

sam7399

So I am currently not able to work and been put in the limited work capability group for two years. So I am not looking for any paid work at all. I am getting compensation for £1000 from my old employer for injury to feelings, will this affect my UC? Or would I need to get it paid into a different account ( family ) member. as I don’t want it to affect my benefits. as it’s compensation and not paid work. Help anyone ta 

Jimm_Scope

They are no longer your employer, if so then I believe this should be counted as a lump-sum payment separate from your income.  So it will be counted towards your savings limit of £6000, not income limit.

Scope has an advice page on lump sum payments and benefits. Listed among them is 

• a compensation payment or insurance claim

I would inform the DWP you are getting a lump-sum payment of £1000. I would not lie to them, as this could be seen as fraud if later found out. If the lump-sum payment takes you over £6000 in savings then your UC will begin to be reduced. Every £250 over reduces it by £4.35, this is all on the information page I linked above about lump-sum payments. Just scroll through it and all the info is there.

I hope this helps!

sam7399

@Jimm_Scope thanks for that. My employment ended, I don’t receive payments at all from them. This is a one off payment for £1000 as I got bullied to death in work. I cannot work at all. Paid or voluntary, so is it a must I have to inform them ? Some people have said no because you’re not employed by that company and it’s not a regular income, I don’t want it to affect my payment. 

Jimm_Scope

@sam7399 A lump sum payment of that amount you should really inform them. If it doesn't take you above £6000 in savings then it won't affect you at all.

sam7399

@Jimm_Scope I don’t have any savings at all in my name. the only money I get in my account is from UC & PIP that’s all. I have no savings at all. 

poppy123456

It will depend on how your employer will pay you this? If it's taxable income and it will be reported to HMRC by your employer then it will be treated as earnings. If not then it will be treated as capital.

sam7399

@poppy123456 if they say it’s taxable I will tell them I don’t want it. as it will affect my UC. If it’s just a straight transfer to my bank account without reporting it to HMRC would that be ok? 

poppy123456

If it’s taxable then your employer will have no option but to report it to HMRC and then UC will know because they check real time information. (RTI) 

sam7399

@poppy123456 what does rti mean ? So when I call them up what do I need to ask ? how they are sending it ? Is that what I need to ask. Or can I get it sent to my wife’s account she’s not on benefits.

poppy123456

You will need to ask your employer if it's taxable income. Having is paid into someone else's bank account isn't going to help you. 

If you live with your wife then you would be claiming UC with her because it's a means tested benefit.

sam7399

@poppy123456 if they say it’s not taxable income does that mean they don’t declare it to HMRC ? I don’t live with my wife poppy. Thank you for replying. 

poppy123456

sam7399 said:

@poppy123456 if they say it’s not taxable income does that mean they don’t declare it to HMRC ? 

That’s correct. However, you still need to tell UC once you receive it as advised by Jimm. 

sam7399

@poppy123456 just informed UC. I am shocked that they said it’s fine. Thank you for letting us no. and said it won’t affect your UC at all. 

poppy123456

That's good news.