PIP lump sum/UC

Hi All,

I've been reading through the forum and online but not 100% sure of the correct answer. I have read 1 year and £5,000, but if it's more, then what happens?

Okay so, all I would like to know is, a PIP backdated lump sum, how much and what is the timescale where it isn't classified as savings where it affects UC payments ? For example, if it's 1 year for £5,000, does that mean 2 years for £10,000 ? Is it taken into consideration immediately, or not at all for a certain period of time?

Thank you,

Kind regards.

Hi Chris

This payment is not counted as savings for one year and will not affect your income related or means tested benefits during this time, such as UC.

However, where benefits have been underpaid because of:

* an official error
* an error on point of law

Any payments over £5,000 can be disregarded for the length of the claim or until the award ends.

I know many claimants who receive a large backdate set up funeral plans. You can do what ever with your savings as you please, but remember DWP could treat your spending as Notional Capital.

Deprivation of capital is when you knowingly reduce or transfer elsewhere your savings or other capital to get, or increase your award of means tested benefits, so keep receipts of anything you spend your savings on.

Gary

Hi Gary, Thank you for this. I have kept all receipts of purchases, this is something I've done for years to monitor my spending. It is a year now since I was given the payout, and I am still over the £6,000, so guess I'll have to put the rest down to a loss that they'll deduct from my UC. Thanks again Gary for your help. Its greatly appreciated.