Does personal injury claim affect benefits?

It's also possible that your benefit situation will change after you receive compensation for your injury. You will generally receive compensation in the form of a lump sum, which could affect your eligibility for benefits subject to resource verification. Similarly, you may be entitled to new benefits because of your injury. If you're going to receive an amount of compensation that will exceed the threshold for proven resource benefits, it's wise to consider opening a personal injury trust.

It's best not to transfer money from the trust account to your own account; this could mean that your personal injury settlement is no longer protected and may be subject to the means test for your benefits. In reality, the government ignores personal injury compensation for the first 52 weeks after receiving compensation (either an interim or final agreement), but the rules are quite strict as to how to spend it within that period (you should not “exhaust or deprive capital” and then claim benefits). I just received a personal injury settlement for 20k after ongoing deductions for the past 2 years. How will it affect my assistance subsidy that started in the last 3 months? The injury insurance claim is not what AA claim for, I understand that AA is not subject to media testing Do I need to inform DWP.

Once you receive the first payment related to your personal injury claim (this could be an interim payment), you will have a 52-week grace period in which the lump sum will not be deducted from your entitlement to benefits. Only “trustees” can access money from a personal injury trust, usually you and at least one other close relative or friend. A personal injury trust ensures that a compensation agreement is conducted separately from the claimant's own finances and that it is created within the law by an attorney with at least three trustees to be appointed. DWP cannot recover any paid benefits you received if your personal injury claim is unsuccessful.

This agreement has been placed in a personal injury trust and the Attorneys have already repaid any benefit amount owed to the appropriate authority. Most personal injury compensation agreements settle at a relatively low value of £3,000 or less. In your situation, it is wise to discuss this matter with your lawyer and also make sure that any settlement you receive at the close of your claim is maintained in a way that does not affect your rights to future benefits, such as a personal injury trust. We can help you establish a personal injury trust to manage your compensation so you can claim the benefits you received prior to your injury.

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