I’ll health compensation payment and UC

Jensy

Hi,

Looking for some advice as it is seeming likely I will be dismissed on ill health grounds and may be offered compensation for this.

I’m not sure of the amount but could be up to £13,000 I believe and was wondering how this would affect my UC claim, I have been off for over a year now and stopped being paid roughly 6 months ago. I am currently receiving LCWRA and am really hoping I will not have to try to reapply for it again.

Would the compensation be classed as savings and would I be able to spend some if it on a new(er) car? My current car is 20 years old and I fear on its way out and I am struggling to drive it, so could really do with changing to an automatic if possible as need to drive to get child to and from school.

Any advice would be very much appreciated.