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.

Sections on this page (click to view)

Sections in this guide (click title to view)

1. 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

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.

2. 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.

3. 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