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Medical negligence pay out and disability benifit.

Jamie78

Hi, I would like to know how I can put a potential pay out for a medical negligence claim to use. I am receiving universal credit and pip for a spinal injury and I also claim housing benifit. I gather I can ring fence this money as to avoid my benifits being stopped. I would like to know if I could buy my own home with it, and move to a different area. Will I be able to still claim disability allowances? Many thanks. James

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chiarieds

I can't profess to know about the implications for you personally, I can only speak from helping a friend of my then husband successfully win a medical negligence claim some years ago. He was offered £120k before going to court, which he accepted. He lost one of his benefits (I can only presume Universal Credit) due to the amount he received.

Medical negligence claims are actually quite difficult to sucessfully claim; his solicitors, who'd previously used a medical expert in the field of his genetic disorder, couldn't see how he could successfully claim, & would only proceed to take this to court if they were 80+% sure it would be successful.

Jram46

Yes you will be able to use the money for a house purchase. Make sure you get a specialist compensation solicitors like Irwin Mitchell to deal with your claim who will put everything into place and have all the information you need

Jamie78

Thanks for your replies, yes it is hard to successfuly claim medical negligence. Especially when medical negligence is a normal every day routine for the NHS these days.

Rosie_Scope

Hi @Jamie78, I don't think there would be any issues using the money to pay for a house.

However, as someone mentioned above, you might find that you are no longer eligible for Universal Credit or that your payments will be reduced unless you put the money into some kind of trust. I'm not too familiar with that process so other members might know more about that than I do, but all in all it might be worth getting some advice from a professional. You could try looking on https://advicelocal.uk/ to see if there's any specific benefits advisers in your area who can clear things up for you.

Your PIP will likely be unaffected as that is not means tested 😊

Good luck whatever you decide to do!

Wilf60

Jamie, you can set up a Personal Injury Trust Fund. You may need the assistance of your solicitor to do so.

A PITF allows you to 'ring fence' your compensation and your benefits will not be affected.

Any house purchase which uses money from the PITF will technically belong to the PITF and again will not affect your benefits.

You will need at least 2 trustees one of which can be you. The other trustee should be someone you trust.

Jamie78

Hi, thank you for letting me know. I have read that the house you live in and own is disregarded as an asset on universal credit.

Jamie78

Wilf60

https://forum.scope.org.uk/discussion/comment/902715#Comment_902715

Yes, that is correct. If you own a home and live in it your standard rate UC is not affected. However, it could be included if you were to claim any further means tested benefit top ups.

poppy123456

https://forum.scope.org.uk/discussion/comment/902799#Comment_902799

I don't know what you mean by your 2nd sentence.. "however, it could be included if you were to claim any further means tested benefit top ups."

There's no other means tested benefit top ups other than council tax reduction. If you own your own home then obviously you won't need to claim for help with the rent as part of UC.

Jamie78

I think he means any other benifits might be affected, but yes there arent any apart from council tax reduction

Wilf60

As always, your own personal situation will determine access to means-tested benefits. However, my response initially was to whether a personal injury payout would affect UC. I personally have a personal injury trust fund and have bought a property through my trust fund. I am still entitled to means-tested benefits if I were to need them as the home is my primary residence and not an investment (e.g. a second home which is rented out).

Adrian_Scope

Note from online community team:

Following review, we have chosen to close this discussion as we felt it was no longer in keeping with our online community house rules of remaining civil, supportive, and safe.

@jamie78 If you still have any questions please don't hesitate to start a new discussion and we'd be more than happy to help.