UC and critical illness payout

kerry13

Hello,

I was diagnosed with kidney cancer in April last year and was given a critical illness payout in November. Does anyone have any experience on whether these types of payout come under disregarded for UC capital limits?

Citizens Advice have given me this information:

"Personal injury and illness compensation payments are not taken into account for the first 12 months after you receive them. After 12 months, only personal injury or illness payments which are put into a trust or used to buy an annuity are not taken into account. " https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#personal-injury-and-illness-compensation

However, UC are saying that critical illness doesn’t not come under this.

Thanks

OverlyAnxious

Hi,

This is an interesting question. You can see the legal stuff regarding capital disregards here.

ADM Chapter H2: Capital Disregards

There is no mention of critical illness pay out at all. I would say it isn't quite the same thing as personal injury compensation. So from a legal point I'm not sure they would have to accept it.

I would recommend that you appeal the decision anyway though.

kerry13

Thank you for your reply.

It does seem to be a bit of a grey area. I haven’t been able to find anything clear cut to say yes or no for definite.

Citizens Advice legal department told me to quote this case ‘R (sb) 2/89’ as this shows that personal injury can also include disease (in my case, kidney cancer resulting in loss of kidney)

I was hoping there might be other people out there that have been in a similar position and have a clear answer.

Jimm_Alumni

On the face of it that case does indeed state that the tribunal found Person Injury to include a disease or injuries suffered as a result of a disease in relation to Supplementary Benefits (Resources) 1981. You will have to argue it, it may to go to a decision maker as to whether it is an acceptable disregard or not. Those decisions follow the same appeals process as other benefits appeals too. I don't see the harm in requesting it be disregarded, the worst they can say is no and then you go through the appeals process.

poppy123456

I'm confused when CA have advised you to quote that case when it's all the way back from 1987 so a completely different benefit was being claimed at that time.

I agree that it doesn't come under personal injury.

May I ask if it's a lump sum or a monthly/weekly income, or both?

kerry13

It was a lump sum payout and the critical illness is a benefit I get through my employer.

The gov.uk website paragraph states “personal injury and illness compensation” which is where the query has come from and nothing can be found that explicitly mentions critical illness payments either that they are definitely regarded or disregarded.

kerry13

I think the question is, what is a personal injury?

Personal injury payment

H2094 Where a person has received a payment in consequence of a personal injury but it

1. is not held in trust or
2. has not been used to purchase an annuity or
3. has not been otherwise disposed of

it can be disregarded if it has been paid to the person within the previous 12 months!. (See also H2028.)

This is why CA have advised to quote the legal case as this shows disease can be classed as personal injury.

poppy123456

Critical illness payout is not the same as personal injury payment.

Please bear with me on this one because I only have access to my phone at the moment. Once I’m home this evening I will have access to my MacBook and will have a look and get back to you.

kerry13

I have had an update from UC this afternoon, critical illness does come under the illness compensation part and is therefore disregarded for 12 months

"Personal injury and illness compensation payments are not taken into account for the first 12 months after you receive them. After 12 months, only personal injury or illness payments which are put into a trust or used to buy an annuity are not taken into account. " https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#personal-injury-and-illness-compensation