Hi, my name is AliAnne! What can my son spend his back pay on?
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?
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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?
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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 .
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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.
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That is reassuring
Thanks
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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
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'':
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!
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The plot thickens.. I have now been made aware of the amout of backdated payment which my son will be receiving imminentky. Up until now I have been managing a direct payment from the council to manage his care in a supported living placement. When the direct payment was set up a contribution amount was calcluated and a specified amount has been transferred from my sons account financed by his benefits to contribut to his care. I am now told by the council that in the light of this severe disability back payment the council have a right to claim a portion of it as had he been given it for the past 7 years his financial assessment would have calculated that his contribution would have been higher.
I hope that I am explaining this clearly. I am struggling with this because I am struggling to work out how they can do this and how the amount would be calculated and what percentage if any they have a right to demand? anyone shed any light on this ?
Many thanks
Horrid to feel stressed about recieving money and juggling having it snatched away
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Update on this thread.. It has all turned terrible. It turns out that my son wont see a penny of his backdated claim so this is a warning to anyone thinking of going through the hassle of applying for it. I have been in receipt of a direct payment from the council since 2018 and they are claiming that the backdated claim is theirs and are going for the lot. What makes this a very bitter ill was that in was a council benefits advisor who advised me to apply and then after we were told how much my son was to get he copied in the financial assessment team and they consequently told me that they consider the money as income.. and if he had been claiming it at the time the whole amount would have been taken from him anyway as his contribution. I am intending to make a formal complaint against the council about the way this has been done.. in a nutshell the council advised me to apply knowing full well they were going to take the money and so they used me to obtain government funds and they have abused by sons and our mental health in the process. I am utterly furious..
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Sorry to read this but I don't have any knowledge in this area unfortunately. I understand your posts and that your son pays something towards the care provided. I would not have thought the council could take all of the backdated money, a percentage yes. Your son needs money for other things and not to leave him penny less. I would get some expert advice from a benefits advisor not linked to the council, at least if it is right what the council is doing you will may be feel better in knowing that it is correct. I normally help with PIP where I can, but I saw your post looking at what was new on the forum.
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I'm really sorry to hear about what's happened @AliAnne, it's no wonder you're angry.
If you'd like to speak to someone independent of the council you could try looking for a local benefits adviser:
They may be able to offer some more insight into what's happened and advise you on any further steps.
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Thanks. I took advice from the CAb and they said that legally the council can seek to recover funds but the manner in which they have gone about that is very bad form . I have submitted an e mail complaint to our locil county counsillor and I will be baking a formal complaint direct to the council about the way they have used me to obtain government funds
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That sounds like a good plan @AliAnne, I hope you get a satisfying response to your complaint.
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Sorry, should have said in my original post, I agree with you, what the council has done is bad and sneaky actually. I would not have a lot of time for the council benefits advisor that is for sure...
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I could not edit my post above, but also I did look into Direct Payments and contributions, but the internet was not much help.
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