PIP backpayment & UC savings question

connorjvd

Hi

I have just received my PIP backpayment after being successful at tribunal. I was about 3k into overdraft when I received it and am now about 3k in the positive. I know that UC has to disregard PIP back payments for 12 months before considering any that is left as savings, my question is this: if in the next few months I use the money I was planning to use to pay off my overdraft to essentially still do so, so that my account balance reflects the full backpayment rather than my overdraft having essentially eaten half of it, will this amount still be ignored because it is only that amount because of the payment? ie I will have 6k in my account because I got given 6k amount from my back payment and then I added money afterwards so that I would have the full 6k, if that makes sense? Like will they just ignore the specific amount that my PIP backpayment was (ie if my back payment was 6.25k they’d ignore me having up to 6.25k savings for a year)? Just a bit confused about how it works :) Thanks

bookrabbit

No they will only disregard the amount from the award that is continuously in your account so if it paid off your overdraft it won't qualify. On the other hand it won't really matter because you will be under the £6000 threshold anyway and it only lasts for a year anyway so unless you have money coming from outside it is unlikely to cause a problem.