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PI Claims for Clients Who Receive Benefits - Philippa Barton, Hodge Jones & Allen

24/11/16.From time to time, personal injury practitioners find they need to pass on interim payments or damages to clients who are receiving benefits. In these cases it is important to consider the effect this will have on a client’s entitlement. If they receive means tested benefits or are likely to in the future, and/or receive social care paid for by social services, a failure to take account of this could mean an individual losing the right to those benefits and care.

For most means tested benefits the general rule is that the client must have less than £16,000 in capital to receive the benefit at all. If they hold more than £6,000 they would receive a reduced level of benefit. Any income they receive in addition to benefits is taken into account when calculating entitlement and usually reduces them.

Local authorities have a duty to provide accommodation and social care support for vulnerable people. For social care, the capital limit is £23,350 and if a claimant has over £14,250 they will have to pay some contribution...

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