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Personal Injuries Insurance payout - Affecting my UC?

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8 months 3 days ago #289073 by LiamH
Hello 

My query is about the impact on my UC of a personal injury insurance claim payout. 

I have an insurance payout forthcoming within the coming months. It is relating to a road accident injury- which did not result in me receiving any additional benefits.

According to the UC website, insurance claims may 'sometimes not be classed as income' and not affect UC payments.

It would seem some claims can conversely be classed as income and would affect my UC payments.

The UC helpline has confirmed the above, but has not been able to offer guidance on my question: When does an insurance payout count as income and when does it not?

Any info from experience on this matter would be greatly appreciated.

Many thanks, Liam 

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8 months 3 days ago #289080 by Gary
Hi LiamH

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

You raise an interesting question which I could not answer but I have checked my favourite Disability Rights handbook edition 48 page 109 para 14 Compensation schemes
Compensation for personal injury - If you have been awarded compensation because of a personal injury, any regular payment from it are disregarded. If the compensation has been used to buy an annuity, payments under the annuity are disregarded. If the compensation is held in a trust, any income from the trust is disregarded. If the compensation is administered by the court on your behalf or can be used only by direction of the court, regular payments from it are disregarded.

UC Regs, reg75

Hope this answers your question.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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8 months 2 days ago #289104 by LiamH
Hi Gary

Many thanks for this reply and I appreciate you researching the issue. I don't think my specific query is addressed directly: the info you have provided is about regular payments and I am expecting a single on-off payment.

The info from UC seems to be this single payment 'may or may not ' qualify as income. I wonder if any info on what makes the difference re a single insurance payment is available anywhere?

Liam

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8 months 2 days ago #289113 by Gary
Hi LiamH

It is an area where I do not have much knowledge, where I work we have consultants who have a lot of knowledge, I will ask them next week and will let you know .

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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7 months 4 weeks ago #289288 by LiamH
Hi Gary

Many thanks-I would certainly be interested in any response from one of your colleagues.

If my regular UC payments are likely to be affected by the one-off insurance payment I'll want to anticipate that.

Appreciatively, Liam

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7 months 4 weeks ago #289319 by Gary
Hi LiamH

I have received a reply and a link that you will find useful, a lump sum will be disregarded as capital for 12 months from the date of the payment, whereas if the compensation is received as regular payments the regular payments are disregarded as income.

ADM Chapter H2: Capital Disregards (publishing.service.gov.uk); assets.publishing.service.gov.uk/media/6...000d360b54/admh2.pdf

Gary

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