Birmingham Equal Pay settlement payments - treatment for means tested benefit purposes

Hello all,

I wanted to check whether anyone has experience of Birmingham Equal Pay settlement payments from the and how they are considered for means tested benefit purposes.

This Rightsnet link has been useful - http://www.rightsnet.org.uk/forums/viewthread/8097/ I would like to check against the facts of my client’s case and hear your views.

He was paid £12k initially in March 2016. I have a copy of the settlement agreement and have redacted it but note a confidentiality clause so I am not sure about posting a copy.  The payment is described as a ‘settlement’ (reached with the assistance of ACAS) between parties (the employee and B’ham City Council) ‘in that action has or could be taken against the council in respect of Equal Pau in the Employment Tribunal, although for the avoidance of doubt, the council makes no admissions liability in respect of such action.

I wonder how these payments would have been considered initially had my client been making a means tested benefit claim back when he received the payment - income or capital? Capital presumably because it was a one off payment, but as the payments represent backdated pay difference, can they be disregarded as past earnings?

The facts of this case now are that he has just made a claim to UC in a full service area.  He now has £6500.  I presume this is now definitely capital?  From CPAG I see no relevant exemptions for this kind of payment and presume it will just be considered under the UC capital rules. But is that correct?

In solidarity,
EKS.