I have heard that personal injury compensation is disregarded for a period of 52 weeks from payment.  What do I need to know?

This is correct. Personal injury damages can be disregarded for a period of 52 weeks from the date awarded. However this is not without complication. Firstly, it is necessary for you to claim the 52 week disregard and it is advisable that this is done in writing to fulfil your obligation to notifying of your change in financial circumstances. Furthermore, the 52 week clock starts ticking from the date of the first payment of any made in consequence of the injury. Therefore previous interim payments, insurance payments or even charitable payments made to you as a consequence of your injury will all start the clock. It is therefore possible that this disregard period will have expired prior to receiving any payment from your personal injury claim.

Even if the disregard period is available to you care must be taken. At the end of the disregard period you may be asked to account for how your funds have been used. In the event that your benefits agency considers your expenditure to be extravagant or purposeful to rid yourself of funds to create, maintain or increase any entitlement to you may be caught under the 'deprivation of capital' rules and treated as retaining funds you have spent. This would have the double edged result of reducing your benefit income at a time that you no longer have the capital to support yourself.

My name is Amy and I am now 24. I have cerebral palsy, which I why I can’t talk or walk. This often means people don’t realise I am otherwise a normal human being.

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My name is David. I’m 52 years old and live with my wife, Lesley, and ‘Bernie’ our very affectionate and inquisitive Jack Russell. I was involved in a serious accident at work in 2005 and broke my back and suffered an acquired brain injury.
I am Jack's Mum and Court of Protection appointed Deputy. Jack has cerebral palsy, which has a profound impact on every aspect of his daily life.
It is rare that the investment of an award of damages is the sole solution to our clients lifetime needs. But the importance of investing an award of damages with a suitable degree of investment risk, in a manner that meets expectations should not be underplayed; it takes many skills, understanding, experience and a tested methodology.

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