When a person receives an award for compensation, that person’s entitlement to means-tested benefits may be reduced or stopped completely, depending upon the size of the award. You can have your compensation and retain your means-tested benefits only if you set up a special, compensation protection trust to hold the monies.
If you receive means-tested benefits, you can only hold a certain amount of money in your own name. This is known as the ‘capital threshold’. This capital threshold is calculated per household; so if your partner is in receipt of means-tested benefits, your personal injury award may also affect their entitlement.