Universal credit and critical illness cover

chacha26
chacha26 Online Community Member Posts: 9 Listener
in Universal Credit (UC)

hi me and my husband receive uc , my husbands recently went onto Ssp of £118 a week from a conditon through his work , wear and tear and waiting surgery for this .i get adp enhanced mobility and we have lwcra , child element and housing costs on our claim . He has a critical illness cover that he pays £15 a month for and they have paid out £500 for the first 30 days of his illness ie not being able to work . So on the claim form it says that they inform hmrc so not a problem but looking about on google it says this is classed as a income and is taken £ for £ off our universal credit so basically not worth the policy . I keep seeing different things online about it and just wondering if this is the case .

Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,145 Championing

    Hi,

    If this is a one-off insurance payment, it should be treated as capital (savings) by UC, not income.

    If it was a regular payment then it could be treated as income. If it got treated as Unearned Income, then it would be deducted £1 for £1. But if it was treated as Earned Income, then it would be the same as working, no deduction below the Work Allowance, 55% deduction above the Work Allowance.

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