How does any compensation awarded by a court affect benefits ?

RubyRabbi

Hi ~ Hope you are all warm and well ! I need some advice regarding a situation I may well face soon .
 In my previous business life, before I became ill, I invested into an investment scheme, the organisers of which then promptly disappeared with my cash !
After years of wrangling, this is about to come to court and I suspect I will win.

Can somebody tell me what is the legal position on receiving this money ? Most of it will have to go into paying back family members anyway. However, presumably there are rules regarding the DWP re. this ? 

Getting a bit concerned about this now,after having fought for my disability benefits!

Hope somebody can point me in the right direction/ give me the name of the legislation that covers this ? 

Many thanks ~ 
 

poppy123456

The starting point for any advice would be to know exactly which benefits you’re claiming. 

Edit to add, personal injury compensation is disregarded for 52 weeks but not aware of any other compensation being disregarded. 

What is the compensation for exactly? 

RubyRabbi

The compensation is for fraud by the property development company that took my cash ~ the misrepresentation act proves that my contract was breached. It is not to do with personal injury. However, the excessive stress that I suffered because of this company's actions caused a heart attack, stroke and fibromyalgia, so I am suing for personal damages also. This, I suppose, could be broadly construed as 'personal injury' should the Court see my point of view and award these damages.

Is there a specific law which covers compensation rules for PIP and Universal Credit benefit claimants ?
Presumably, it would be the same law that would cover an inheritance which befell benefit claimants ?

Any help much appreciated .......thanks, RR

poppy123456

PIP isn't means tested so that's not affected. There's no disregard for any inheritance. 

I'm not aware of there being any disregards for compensation for fraud. If it's not specifically a claim for personal injury, which it doesn't sound like it is then there's no disregard. 

Here's a link for the UC regulations 2013 chapter 6 part 4 here. https://www.legislation.gov.uk/uksi/2013/376/part/6/chapter/4

Paying off debt is not treated as deprivation of capital but paying back family members is a different story unless you have legal written proof that you owe them the money. It will be down to a decision maker to make the final decision. 

You will need to report the changes once any money goes into your bank if it takes your capital to more than £6,000 you must report the changes.
. 

RubyRabbi

Thankyou SO much ~ that is great, thankyou  and the link to the legislation is a massive help.
I think you are amazing, actually, doing all of this........ RR

poppy123456

You're welcome and thank you. Although I can't see anything in the regulations that says it can be disregarded.