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Injury Compensation over 16k and UC but.....

Hi guys I really hope someone can help me here. I'm about to receive compensation which is over 16k but I will be paying off debts which will leave me way less then 16k I already got letter from CRU telling them I owe them £0 on certificate.
Question is do I still need to let them know about this money because they already know about it and specially after I paid off all my debts I will be left with way less then £16k I was told as long as it's under 16k it's fine and I don't need to worry about it.
I'm unabld to work due to long term disability and clearly I don't want to get in trouble.
Any help would be great
Thank you
Question is do I still need to let them know about this money because they already know about it and specially after I paid off all my debts I will be left with way less then £16k I was told as long as it's under 16k it's fine and I don't need to worry about it.
I'm unabld to work due to long term disability and clearly I don't want to get in trouble.
Any help would be great
Thank you
Replies
I just want to make sure I will not be penalised.
Also how long will my UC be reduced till I have this savings or specific time ?
Thank you