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savings over £6000 due to compensation.

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Snak64
Snak64 Community member Posts: 8 Listener
in Employment and Support Allowance (ESA)
Hi,

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!
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  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    edited April 2021
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    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.
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  • Snak64
    Snak64 Community member Posts: 8 Listener
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    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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