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Personal Injury Payments

11 June 2014, 02:58 pm

Mairi
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Welfare rights officer - Dunedin Canmore Housing Association

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Looking for opinions really as not sure if this will fly…..

What do people think the definition of Personal Injuries Payment is when related to means-tested benefits?

Specifically, I am helping a tenant who has managed to make a claim under an income protection type policy which has paid out a large lump sum due to her being assessed as being permanently disabled by her health conditions. She has been receiving some ESAib (SDP top-up of a contribution-related award) and HB/CTB. A colleague suggested that this money might be disregarded for 52 weeks (and if we can get a trust fund set up, longer).

Any knowledge out there on whether this type of thing would qualify? It hadn’t occurred to me as I (and tenant) were just chuffed to get the company to pay out…...

Mairi

11 June 2014, 03:09 pm #1

Paul_Treloar
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Welfare benefits caseworker, Mary Ward Legal Centre

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CPAG 2014-15 p.347 refers, basically a payment that does not come from a trust and is made because of personal injury is disregarded for 52 weeks, which gives the claimant time to either spend the money or put it into a trust or annuity. If a trust fund is set up out of the money, its value is ignored without time limit. Payments made from a discretionary or non-discretionary trust set up from personal injury money are treated as income or capital depending on the nature of the payment. Income is disregarded but capital counts in full.

11 June 2014, 03:34 pm #2

nevip
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Welfare rights adviser - Sefton Council, Liverpool

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For what counts as personal injury and personal injury payments see R(SB) 2/92. Attached. I see no reason in principle why the payments made to your client cannot be personal injury payments.

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R_SB_2_92.pdf (File Size: 390KB - Downloads: 2176)

12 June 2014, 01:49 pm #3

Mairi
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Welfare rights officer - Dunedin Canmore Housing Association

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Thank you Pauls (and Sean who thought this might be the case).

That’s really good news as it hadn’t occurred to me. My largest success ever is getting bigger by the day.

Mairi

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