If someone else’s negligence causes you to experience a physical or psychological injury, you are perfectly entitled to seek legal compensation for your suffering.
If you receive a significant ‘lump sum’ compensation payment as part of a personal injury claim, then this can affect your entitlement in the future to receive certain means-tested state benefits.
Suppose the value of your injury compensation settlement, combined with your savings and assets, falls within a specific financial bracket. In that case, it may impact the amount of benefits you can claim from the government.
Here we outline how compensation affects your benefits and explain what you can do to safeguard your entitlement.
The short answer is yes, if your total household capital is more than £6,000, you are not permitted to claim some means-tested state benefits.
Suppose a compensation settlement takes you above a certain threshold. In that case, it could affect your entitlement to benefits, which could be stopped or reduced as a result or even prevent you from being able to claim benefits in the future.
The means-tested benefits that could be affected currently include:
If you are entitled to personal injury compensation, you should not worry about receiving the compensation you are entitled to because of any effect on your benefits.
Our solicitors have specialist experience to provide you with practical and simple solutions to mitigate the risks. This includes using a Personal Injury Trust, which allows you to claim the maximum settlement possible without affecting your entitlement to certain benefits.
The law around Trusts is complex; however, with our help, using this funding facility is a great way to protect ‘lump sum’ compensation payments and your right to means-tested benefits.
Here are some of the key features of a ‘Personal Injury Trust’:
You must seek professional advice by speaking to our expert team, who will happily answer any question you may have and advise on the best way forward.
Our doors are always open for you, come at any time and have a cup of tea with us!