The DWP may recover some benefits from the compensation.
The amount of compensation left over could affect entitlement to means-tested benefits, but in some cases it is possible to set up a trust to avoid this.
I strongly advise her to get specialist advice on this if he compensation, after recovery of benefits already paid, puts her over the capital thresholds for means-tested benefits.
See this.
www.dwp.gov.uk/docs/gl27-print-version.pdf If recovery of benefits paid would mean that she received no net compensation, I venture to suggest she should be discussing with her solicitor whether they are claiming the right amount. Again, professional advice is important to get it right.