Help with UC disregards please - PIP Arrears and possible settlement payment

I would be very grateful for any help and advice on this as I'm really worried and unsure what to do next.

I currently receive UC, including the LCWRA element and housing costs, as well as enhanced-rate PIP for mobility and daily living.

In March 2026, I received approximately £18,000 of PIP arrears following a successful First-tier Tribunal appeal.

I am trying to establish if the PIP arrears may qualify for the extended capital disregard under Regulation 10A of the UC Regulations 2014, potentially lasting until termination of my current UC award. I believe there were multiple factual errors in the DWP decision to reject my PIP and award me 0 points which was eventually overturned at Tribunal.

The other issue is I am going through a disability discrimination case with my previous employer which is looking like it may reach a settlement which may include approximately £15000 of income (notice and holiday pay) and approximately £8000 in compensation.

I am particularly concerned that the settlement payments could result in a nil UC award and trigger the surplus earnings rules, potentially terminating my current award and affecting the capital disregard on my PIP arrears.

I would be very grateful for advice on:

Whether my PIP tribunal arrears qualify under Regulation 10A and how to establish this?
Whether the anticipated payments could terminate my current UC award.
Whether reopening UC within six months would preserve the arrears disregard and my protected LCWRA entitlement.
Any lawful steps that should be considered before the employer settlement is agreed and paid.

Many thanks for any advice and help