Any money you receive in connection with a personal injury claim may affect your existing and future entitlement to means-tested benefits.
Some benefits like universal credit, child tax credit and jobseekers allowance are means-tested, so your income and capital can affect your eligibility to receive them.
It’s possible to put all or part of the money paid into a Personal Injury Trust. This will let you keep your existing and future rights to these benefits. This is allowed by the rules, but only if a Personal Injury Trust is properly set up.
You have 52 weeks from the date that you get your first personal injury compensation award or interim payment to set up a Personal Injury Trust. The payment will be ignored whilst your entitlement to means-tested benefits is being considered. After the 52 weeks, your compensation award counts as money when your right to any means-tested benefits is assessed.