CB ESA- Settlement from employer

Hi,

I've been of work for over a year snd I've recently been placed in the support group for Esa CB. We are not entitled to any means tested benefits.

My question is:

My employer is desperately trying to dismissal me on group of incapacity but they havnt been strictly within the law on this and I pointed this out to them. They've now decided to negotiate a settlement agreement to bring my employment to an end. I'm already due about £7000 in notice pay, holidays etc. I know anything they give me in addition to this will be modest knowing them but I'd be hoping for a few 1000.00. Will I have to declare this to ESA? Will it reduce/ affect my ESA?

Many thanks for your help.