Home Loss and Disturbance payments

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    We have some claimants who have got to leave their privately rented dwellings due to them being demolished.

    Each of the tenants will receive a home loss payment and a disturbance payment.

    Home loss payments are made in recognition of the personal distress and inconvenience suffered.

    Disturbance payments are made to compensate for reasonable expenses incurred in moving.

    My thoughts are that the home loss payment would count as capital but the disturbance payment would be disregarded as capital for 26 weeks. Paragraph 10 of schedule 5 of the CTB Regs states that any sum paid to the claimant in consequence of damage to, or loss of the home or any personal possession and intended for its repair or replacement should be disregarded.
    Whilst the payment isn’t specifically to do with repair or replacement it is recompense for expenses incurred for the move.

    What are your thoughts on this? Has anybody dealt with these kind of payments before?

    Many thanks.

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