Effect of damages on UC

Page 339 of the CPAG handbook states that ‘employment tribunal awards for unfair dismissal’ would be treated as capital under UC.

I have a case where the employer has made an offer to pay 2 months worth of pay in damages to avoid constructive unfair dismissal litigation. Am I right in assuming this would be counted as income in the AP in which it is paid rather than as capital?

I’m not seeing the logic of treating the payment differently considering they are avoiding costly litigation.