My daughter was seriously injured in a car accident two years ago. It’s unlikely she will be able to work again. She’s planning to move out of her council flat and buy a home of her own with the compensation she’s due to receive. But we wondered whether this would affect her entitlement to benefits?
It sounds as though your daughter was working prior to the accident, in which case she may be claiming incapacity benefit or contribution-based employment and support allowance. This is not means-tested, so any compensation she receives will not affect her entitlement. However if necessary she could consider setting up a Special Needs Trust, which is permitted under the Social Security Act 1989, and which can protect the continued receipt of all benefits. Her solicitor should advise her about this.