Will the TTO backpay affect my benefits?
Your benefits may be affected by this backpay once you receive it however, you should contact HMRC/DWP and explain that this was a one-off payment.
We have looked into this and it is our understanding that had you received the correct Term Time Leave payment in the first place, your benefits would have been lower at the time that you received them compared with the amounts you actually did receive. Therefore, in terms of the money you will receive from HMRC/ DWP now as your benefits, taking the average back then and now you should not be put at a disadvantage even with this lump sum TTO pay out now. Please contact your benefits advisor for a detailed clarification.