§ Mr. LevittTo ask the Secretary of State for Social Security if she will review the benefit entitlements of persons who have significant savings only as a result of receiving compensation for vaccine damage as children. [37093]
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§ Mr. DenhamAny lump-sum payment made in consequence of a personal injury—which would include a vaccine damage payment—can be ignored providing it is held in a Trust. The normal rules on deprivation of capital do not apply to a person who puts money from such an award into a Trust. The treatment of payments from Trusts depends on the terms and nature of the Trust itself and the purpose and use of the payments. For example, a regular payment from a discretionary Trust can be fully disregarded provided it is intended and used for items other than normal day-to-day living expenses. These rules enable personal injury awards to be used for the benefit of the injured person without affecting income-related benefits. More generally, we will keep the operation of the income and capital rules under review as we develop the principles announced in the Welfare Reform Green Paper.