Hi, my name is AliAnne! What can my son spend his back pay on?

AliAnne

Question about backdated Severe disability payment. I am appointee for my son who ist transpires is going to be recieving a backdated lump sum as he wasnt awarded SDP when he should have been. I have been told that the amount will be disregarded for 12 months so he will want to spend it. Its a large amount. I am seriously daunted by this because I am worried that this sum of money could impact his benefits. What can the money be spent on? He wants to go on a dream holiday but I was told that he wouldnt be able to pay for me to take him I would have to fund myself but I havent go money for that.. has anyone any experience of navigating this?

Albus_Scope

Hey there @AliAnne and welcome to the community! 😁

It's great your son's got the back payment, how exciting! But I understand it's also slightly nerve wracking. Yes the DWP will disregard the funds for one year before it effects any benefits, but the good news is the funds can be spent on anything he wants, it's his money. If he wants to pay for you to go too, then that's totally allowed!

Where are you both thinking of going?

AliAnne

we havent got the payment yet.. we dont know how much but its looking like a large sum. I am getting conflicting advice and I just want to do it right because I gather that the benefits people will want to see how he spends it. He wants to go to America to universal and disney.. I dont think I could manage that on my own with him so he wants to take his brother and his girlfriend but I was told he cant pay for them .

Albus_Scope

Oh that would be an amazing holiday for you all! I loved Universal studios when I went as a kid, it was a real core memory for me.
The DWP don't really care how the money is spent. It's only an issue if it's seen as "deprivation of capital," meaning your son would only be spending the money to get his savings low enough to claim benefits. As long as this isn't happening (which I personally don't see a lovely holiday as,) then there's no problem at all.

The only time the DWP will ask to see bank statements or show any interest in how the money is spent, is during a universal credit review and even then it's to make sure the right benefits are being claimed and there's no fraudulent activity like sending all the money overseas. So please try not to worry about it.

AliAnne

That is reassuring

Thanks

chiarieds

Hi @AliAnne - & welcome to the forum from me also. As you mention your son is due to receive a large amount of SDP backpay, then if this is £5,000 or over then it will be disregarded for longer.

I presume your son receives income related ESA to qualify for SDP, & he will be asked to migrate to Universal Credit (UC) as income related ESA is ending.

If the amount is over £5k (it may be paid in several amounts up to £5k on the same day), then this is disregarded for the lifetime of such a claim. There's transitional provision to cover migration to UC too.

This is all covered under The Universal Credit (Transitional Provisions) Regulations 2014 , i.e. regulation 10A https://www.legislation.gov.uk/uksi/2014/1230/regulation/10A

The DWP's ADM (Advice for Decision Makers) ChapterH2: Capital disregards - H2092 references these regulations in the section ''Arrears and concessionary payments of £5,000 or more'': https://assets.publishing.service.gov.uk/media/67d982dba87d546feeda0193/admh2.pdf

As Albus says, your son can spend this on whatever he wants, including having someone else accompany him on holiday. I hope you'll all soon be looking at booking that holiday together!