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PIP back payment disregarded as capital for MTB?
Client was awarded PIP in June and received a back payment of £982. She is off work sick and unlikely to be able to return to her job, but has claimed UC in the hope that she will receive a payment before her SSP expires/her employment is terminated; after this she should get NSESA. She took a lump sum from her personal pension recently to pay for adaptations to her house, but still has capital between £6000 and £16000. Should her PIP back payment be disregarded for MTB purposes and subtracted from the capital subject to tarrif income, at it is money she was entitled to while her claim was being decided, and if she had received it then it wouldn’t have affected her MTBs?
I think a 12 month disregard applies
See paragraph H2091
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787441/admh2.pdf