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savings over £6000 due to compensation.


I'm hoping someone can help me because I was just told things I was unaware of before. I am on ESA, PiP and receive housing support. All at the higher rates.

I have received a compensation payout of around £7k for a car accident recently. 

I wanted to pay back some debt but I thought I would ask here first as to what needs to be done because apparently I can't do that?

Do I need to inform DWP before I can do anything? There seems to be a 52 week leeway or something for this. The total savings is just the compensation so around £7k

 I wanted to pay a debt of £1000 for money borrowed towards an advance payment for a car on the mobility scheme. - the only suitable cars for me required an advance payment which I didn't have at the time.

Would this count as deprivation according to the rules? I was paying back a small sum but was aware that I would receive this compensation at the time to pay it in full eventually.

I want to use the money to pay debt on my credit card as well.

Can I do this/these or will it go against my benefit? Do I need to inform DWP first? As it's a small amount over, can I just pay it and since it's still within the 52 weeks, not have to mention it? I hate talking to DWP on the phone and want to avoid it if I can.

I will also have to move homes soon (3 months time) requiring money for a deposit (didn't have one in the home I'm in) and the cost of moving  to total another £1000.

Does the same apply for housing benefits?

Thank you!


  • calcotti
    calcotti Member Posts: 5,790 Disability Gamechanger
    edited April 2021
    The compensation payment is ignored for 12 months. You can do what you want with it.

    When you move will you be staying within the same local authority?
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • Snak64
    Snak64 Member Posts: 4 Listener
    SO I do not need to contact DWP at this stage? Will spending the money for the costs mentioned count as deprivation?

    I will be moving to a different local authority and its out of necessity for the support I need.


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