I have someone who was awarded a lump sum payment of £20,000 5 years ago under the pneumoconiosis etc (Workers' Compensation) Act 1979. He has now claimed Pension Credit and the Pension Service are treating it as capital and imposing a tariff income. Is this right? Can anyone point me to some regulations. Thank you.

If he's still got the money have a look at the following:

http://www.rightsnet.org.uk/dc/dcboard.php?az=show_mesg&forum=103&topic_id=913&mesg_id=913&listing_type=search.

I'm not usually that good at doing links but it was kindly done for me some time ago in one of the discussion groups.

There have been a number of other discussions so just put 'trust funds' in the search engine