Worried about this - any ideas?

Question

If somebody is claiming income support in the UK and during that time they are awarded a £1000 lump sum of compensation for a personal injury,are they allowed to keep the money?

Answer 1

Depends, not to any great extent

Only savings of over 6,000 affect income support, if they have no other savings then the 1000 won't affect them. If they have 5,000 already then the additional 1000 will bring them up to 6,000 which will attract notional income for the IS calculation (in this case 4 pounds)

If they have 15,000 the 1,000 would bring them to 16,000 meaning they could no longer claim