Getting a compensation payment from the Lambeth Redress Scheme may affect the amount of state benefits you can get.
Whether your benefits may change will depend on:
- if your benefits are ‘means-tested’
- how much income and savings you have
If you were to get compensation, there are steps you can take to protect your benefits.
Means-tested benefits
If you get means-tested benefits, receiving a lump sum and putting it into your bank account may reduce your entitlement to benefits.
Means-tested benefits include:
- Universal Credit
- Housing Benefit
- Income-based Jobseeker’s Allowance
- Working/Child Tax Credit
- Pension Credits
Currently, for most means-tested benefits, if you have more than £6,000 in savings, your benefits will begin to be affected.
You can use a benefits calculator to see how your benefits might change if you got a lump sum through the scheme.
Protecting your compensation and benefits
You may be able to take steps such as putting the compensation into a trust fund.
Trust law is complicated, however. You may need to seek professional advice. Speaking to your solicitor or organisations like Citizens Advice is good place to start.
Non-means-tested benefits
If you get non-means-tested benefits, these will not be affected if you get a compensation payment through the scheme.
Non-means-tested benefits include:
- Disability Living Allowance
- Personal Independence Payment (PIP)
- Attendance Allowance