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Forum Home  →  Discussion  →  Work capability issues and ESA  →  Thread

Critical illness payment: disregarded as capital??

Mrs Mac
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Macmillan, CAB

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Total Posts: 14

Joined: 4 June 2014

Not sure if I’m posting this in the right place but here goes….
My client has received £100000 critical illness payment.  He does not meet contribution conditions for ESA so we’re considering an ir claim.  I’m aware that payments of personal injury compensation are disregarded for 52 weeks and I’ve scoured the DM guide for Capital disregards but can’t find anything relating to critical illness payments.  Has anyone any experience of this?

Claire Hodgson
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PI Team, BHP Law, Durham

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Joined: 17 October 2013

it is the product of an insurance policy that client already had, NOT PI Compensation, and therefore cannot be put in a PI trust and ignored.

it will be taken into account for any means tested benefit unless client does something sensible with it; I can’t think of any way of getting it disregarded.

for instance, chap on my street paid his mortgage off and built extension, a useful use of the funds and clearly wouldn’t increase benefits and the extensions were needed because house too small for size of family.

Mrs Mac
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Macmillan, CAB

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Joined: 4 June 2014

Those were my thoughts Claire.  Thanks for clarifying.