Award of £56,000 backdated underpayment of beneift is disregarded for 52 weeks, then what? Is Trust Fund advisable? Will that still be considered capital? Who can I refer to for best advice?

Hope you got a bottle of wine for your efforts !

What are circs/age of client ? If got an AIP then should be ignored for that 5 year period at least. As far as trust fund I think no as it's only relevant to PI compo situations.

I don't know whether anyone has ever challenged the limited disregarded period yet but it sounds to me like it should be a goer under HRA - client had absolute entitlement, Sec of State failed in duty to pay and now they put limits on when it is spent. If it's not then where are this person's human rights?
Good luck with it