Windrush Compensation Scheme payments and benefits

I am seeking clarity on how Windrush compensation payments are treated once a claimant is deceased and the funds are received by their estate . I know that compensation payments to claimants are disregarded in respect of the claimants themselves for benefits purposes under the extra statutory provision , however it makes no mention of payments made to , or inherited by the claimants’ beneficiaries. My reading of “the extra statutory provision applies to anyone in receipt of HB or any of the other income related benefits. Any payments made to claimants in respect of the WCS should be disregarded for the purposes of income or capital calculations indefinitely”, is that indefinitely also means if the compensation is inherited by a deceased claimant’s children. However I am also concerned that this is an optimistic reading of the provision and that a person inheriting their parent’s compensation payment will be treated as if they are simply the beneficiary of an estate , regardless of whether the money is compensation or not.

The disregard is no longer extra-statutory as a result of the Social Security (Income and Capital Disregards) (Amendment) Regulations 2021.

The relevant disregard is now in reg 76 UC Regs (and the equivalent provisions for other benefits) in the following terms:

(1A) This regulation also applies where a person receives a payment from—
[...]
(d)the scheme established by the Windrush Compensation Scheme (Expenditure) Act 2020.
(2) Any such payment, if it is capital, is to be disregarded in the calculation of the person’s capital and, if it is income, is to be disregarded in the calculation of the person’s income.

I don’t know that your question has been authoritatively answered although as you say, its a little difficult to see how this would cover a situation where the claimant has received funds through an inheritance, even if you can say that those funds can be traced back to the WCS.

I suppose another way to think about it - would a disregard apply if the funds had been paid to A but then simply gifted to B?

Many thanks for this Elliot ,
it is very helpful
Best wishes
Anna