Hello all

I have a client who is due for an employmnet tribunal hearing and may get some compensation, or she may have pre hearing settlement.

She receives housing benefit, council tax benefit and inocme support, Having looked this up, I have found the recoupment rules, but have not found anything to answer the question of whteher a lump sum payment woudl count as capital for means tested benefits. Do these payments come under the same rules as personal injury, i.e disregarded for 52 weeks, or is it treated as capital.

many thanks

the PI rules don't apply, as it isn't a PI case.

it'll be capital, IMHO

but don't forget she's allowed to pay off debts.

It depends on what the compensation represents. It could be that it counts as earnings for the period it is in respect of and then capital from the date it is paid or from the end of the period it counts as income (whichever is the later).

It will depend on the facts of the case.

NB: There was a HB/CTB UTD within the past few months where it was found that compensation for "single status" cases counted as capital. However, the LA has sought leave to appeal to the Court of Appeal. This is because, on the face of it, the UTD flies in the face of both the definition of earnings as well as, arguably, being contradicted by earlier authorities.