Benefits and Criminal Injuries Compensation

[Ladidi]

Good Afternoon Everyone,

Can I seek you good advice on a pressing matter

Someone I know received compensation from the criminal injuries for a crime that was suffered. The amount was £11k. This person is on Income Support and also in receipt of Carers allowance as they are the main Carer for their ill parent. Question, as getting mixed responses in relation to this matter.
A) The payment was made by Criminal Injuries for a sex related crime
B) Can this be taken into account whilst in receipt of benefits?

I am aware that the DWP does disregard certain compensation payments for certain crimes and also that any income over and above £6k would be taken into account with regards to benefit payments. I also know that under the DWP rules they dont like to see you compensated twice as their way of putting it, I feel had the crime or injury not happened the person would have been in reciept of x, y and z regardless!!

Is there anything that they need to know or should be doing as at present the DWP have reduced Income Support down to as little as just £7 per wk. Is there any type of recourse action they can take?

Thanks Everyone

[Ladidi]

Re: Benefits and Criminal Injuries Compensation

Sorry for bumping this everyone, I could with someone who may or may not have the right answer or putting me in the right direction

Cheers me dears

[Nic]

Re: Benefits and Criminal Injuries Compensation

Hi it may be worth looking into what is known as a personal injury trust this protects your benefits. I had to set one up after a successful lawsuit against social services mine cost £500 to set up but they did it all for me! Hope this helps if you want any more info give me a shout

[Bill-K]

Re: Benefits and Criminal Injuries Compensation

Hi Ladidi,

I'd certainly 'second' what Nic suggests above. I can't help very specifically, but I did have a battle some years ago along these lines. In my case, it was the proceeds from the sale of our former home which INITIALLY made us ineligible for means-tested (and/or income-related) benefits. This was before t'Interweb was around, so I had to trawl through the volumes in our local reference library. After from the 'threshold' level (which appears to be £6K, now) has been exceeded, then there were some options.

One option was to check the 'categorization' of the sudden lump-sum of apparent income. As I think you have been researching, the fact that this is compensation for a crime may well exempt it. Why should someone who has been wronged, and has then received recompense for that wrong, have to be taxed or penalised in any way for that recompense. The recompense is to redress the balance, and to then consider that redress as taxable income upsets the balance, IMO. I think this needs thoroughly investigating, first.

But - if it doesn't get past THAT hurdle (which mine didn't, obviously !!!) - there are still further measures to investigate. There are 'acceptable' disbursements from this lump sum that ARE allowable. As I recall, I was able to include:

The repayment of a debt to a family member (who supplied a written certification of the debt and its settlement);
The purchase of a second-hand Ford Sierra to replace our old banger (a Nissan 'Sunny' van);
The purchase of stock to enable me to continue in my self-employed business as a sole proprietor, as opposed to a contractor;
Clothes for family, to replace the rags we had been wearing...

...etc., etc., etc.

It worked for me, but I sure did have to do some research, as they will not check out YOUR side of this. Sad but true.

[Nic]

Re: Benefits and Criminal Injuries Compensation

From what I was told at the time of my settlement personal injury trusts were effectively the governments idea you do need to have 2 trustees one of who can be yourself and both would have to sign any cheques to withdraw any monies so effectivally you can directly write cheques for anything essential like a car certainly worth looking into you would need to speak to a financial advisor failing that bills idea is a good one effectivally you need to remove 6k away or nothing to be affected also I should mention with a personal injury trust you can put your money in a high interest account in your trust name (which is your name and then personal injury trust) and a crew the interest on it again this does not affect your entitlement. You do have to tell the benefits office you have a personal injury trust but again your financial company will do all of that or you hope this info can help

[Bill-K]

Re: Benefits and Criminal Injuries Compensation

You do have to tell the benefits office you have a personal injury trust but again your financial company will do all of that or you hope this info can help

Yes - very good point, I think, Nic. It is VERY important to be totally 'transparent' with these matters. Disclose everything.

[Nic]

Re: Benefits and Criminal Injuries Compensation

Absolutely but these trusts were set up to help protect people's benefits in such cases the company I used were very good and had all the answers my solicitor referred me and due to anxiety I had q after q I used to send them they lays responded and did things o the times they gave me

[Bill-K]

Re: Benefits and Criminal Injuries Compensation

That sure sounds like the best thing to look into, first, then, Nic. It seems to solve the whole problem in one go.

[Nic]

Re: Benefits and Criminal Injuries Compensation

Yeah it's what I would advise as its legal and should solve ops problem hopefully we have been of assistance

[Ladidi]

Re: Benefits and Criminal Injuries Compensation

Hi Nic and Bill Many thanks for your replies As far as I'm aware the monies have already been paid as a lump sum one off payment and this has been used to pay bills and do up the home in which they live in as a lot things was needing replacing all electrical items and front room bedroom and new bath etc I would say best part of the chunk has gone in doing this. You see they checked with DWP at the time and explained about the lump sum payment and told them who it was coming off and why and they was told by DWP because it was criminal injuries compensation and it was a a sex related crime they would not have any deductions made from their benefit as this would be exempt. Its seems so far that the information given must have been inaccurate because they are now having deductions made from their benefit and are now only being paid a little over £7 a week. Now its either wrong information or someone in DWP have not got it right. They have contacted DWP and explained and have been told to send them letters they received from Criminal Injuries to show how much they was paid and what it this was for. I just thought I would get some clarification on here to see where all this was going to go and if it is correct for them to take this into account or if they should not be taking this into account considering the who the payment was from and why.

Thanks

Ladidi

[Nic]

Re: Benefits and Criminal Injuries Compensation

I think it may be worth speaking to a professional advisor then about this I'm only going off my own experience. Did there solicitor offer no advice after settlement was received?

[Ladidi]

Re: Benefits and Criminal Injuries Compensation

As far as I know I don't think there was one and claim was submitted via themselves as they was told off a good friend a claim could be made.

[Nic]

Re: Benefits and Criminal Injuries Compensation

Ah right ok! Then maybe the best thing ismtomspeak to a financial advisor although as you stated in a previous post alot of the benefit is gone if its below the 6k that is left shouldn't affect there entitlement

[Ladidi]

Re: Benefits and Criminal Injuries Compensation

That's my initial thoughts also Nic, I'm hoping something will be positive for the outcome x