Incapacity Benefit - Insurance payment

Briefly I recently accompanied a friend who receieves the above benefit at an interview. The IB requested to see bank statements which they provided. They are worried about an issue of payment from a house fire which happened in 2002 but had taken until 2006/07 to settle. The fire happened while they were in fulltime employment prior to the claim of incapacity benefit.

A further request has been asked for the bank statement to show when the money was paid.

Question
Will the payment be classed as savings or income and how much money are they entitled to have as savings in their bank account as the money came from an insurance claim, noting the fire happened while they were workingfull time. They only recieve £4 per week of IS included in in the IB payment. Please help as I would like to put her mind at ease.

Many thanks

Sherald

sherald Reece-Bartlett wrote:

Briefly I recently accompanied a friend who receieves the above benefit at an interview. The IB requested to see bank statements which they provided. They are worried about an issue of payment from a house fire which happened in 2002 but had taken until 2006/07 to settle. The fire happened while they were in fulltime employment prior to the claim of incapacity benefit.

A further request has been asked for the bank statement to show when the money was paid.

Question
Will the payment be classed as savings or income and how much money are they entitled to have as savings in their bank account as the money came from an insurance claim, noting the fire happened while they were workingfull time. They only recieve £4 per week of IS included in in the IB payment. Please help as I would like to put her mind at ease.

Many thanks

Sherald

As Moderators our area of expertise is in relation to disability living allowance, attendance allowance, the personal capability assessment used in connection with incapacity benefits, and the work capability assessment used in connection with employment and support allowance. So those are the only subjects on which we can provide reliable information. However, you need to bear in mind that boards like this can never provide advice to individual claimants about their specific circumstances, for that you need to use an advice agency.

All we can offer is general information about how the system works.

However, we cannot offer advice to individuals about a specific benefits problem under any circumstances. To give accurate and reliable advice about a specific benefits problem, we'd need to know a great deal about your income, savings, health, household arrangements and more. To give advice without all this information would seriously risk misinforming you.

If you need specific benefits advice, you can download our FREE, 12 page guide to getting help with benefits.