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does an out-of-court settlement count as income?

  • Val
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10 years 9 months ago #124057 by Val
Hi, I'm on IR ESA and I have pursued a case against the DWP for discrimination (I won't go into the details here).

My solicitors think there's a chance the DWP will offer an out of court settlement of around £1-2K. Will they be able to count this as "income", and claw it back from my benefits? Or will it be classed as savings/assets?

Very grateful for any information. Thank you.

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10 years 9 months ago #124059 by Gordon

Val wrote: Hi, I'm on IR ESA and I have pursued a case against the DWP for discrimination (I won't go into the details here).

My solicitors think there's a chance the DWP will offer an out of court settlement of around £1-2K. Will they be able to count this as "income", and claw it back from my benefits? Or will it be classed as savings/assets?

Very grateful for any information. Thank you.


It should be treated as capital, so if this takes your total savings, cash and capital over £6000 then you need to contact the DWP about it, they may contact you if they believe that you have gone over £5500. If it take you over £16,000 then your ESA(IR) payments will be stopped.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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