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Compensation payment

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  • April 4, 2006 at 11:02 am #22092
    JamesPickering
    Participant

    We have a lady who has received a compensation payment for pain and suffering. She has also received a payment for her Legal Aid entitlement.

    The amount is over £16K.

    Do you think this should this be disregarded?

    April 4, 2006 at 11:29 am #6678
    Julian Hobson
    Participant

    I think you need to find out what enactment it was awarded under. Do you have a copy of the court order/award ?

    The capital can only be disregarded if it was awarded as a result of a personal injury and subsequently put in trust (schedule 5 p13).

    Payments from the trust would be counted as income (reg 33).

    April 4, 2006 at 11:40 am #6679
    Anonymous
    Guest

    ❓

    Wasn’t this was amended last November. See A21/2005 paragraph 42

    April 4, 2006 at 12:13 pm #6680
    Anonymous
    Guest

    First things first . . . . is she getting any Pension Credits? If so, no problem for you.

    (Guess it would have been on other message board if she was . . . but you never know).

    April 4, 2006 at 1:03 pm #6681
    JamesPickering
    Participant

    Unfortunately no PC or anything else in payment.

    I have asked the lady for the enactment but as far as I can tell the payment is because her mother died and the hospital removed an organ so effectively it is like the Alder hey case in the news a while back.

    Based on that it means that it is not due to pain and suffering as in the Personal Injury disregards and therefore not covered by A21/2005 unfortunately.

    April 4, 2006 at 2:08 pm #6682
    Anonymous
    Guest

    Could the pain and suffering be ‘mental’ though? – because they took an organ from her dead mother – this could have caused mental stress or some form of mental disorder – so the compensation if in a trust could well be a personal injury claim could it not?

    I had one a while ago where they had received £15k compensation due to mental abuse as a child – this was held in trust, and had to be disregarded as capital.

    April 4, 2006 at 2:12 pm #6683
    JamesPickering
    Participant

    From what I can gather I think she is going to receive a big fat cheque direct from her solicitor. I am unsure if there will be 1 big payment or two payments (1 compensation and 1 legal aid).

    April 6, 2006 at 12:02 pm #6684
    Anonymous
    Guest

    tell her that she has 16k in the bank and she should go out and do something with herself instead of being a thorn in the side of her local benefits section.

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