§ 29. Mr. SpellerTo ask the Secretary of State for Social Security whether payments made from any disaster fund raised by public donations affect the housing allowances or other social security benefit entitlement of the recipient; and if he will make a statement.
§ Mr. ScottPayments from disaster funds do not affect the majority of social security benefits.
The income-related benefits—income support, family credit and housing benefit—may be affected by payments from disaster funds but this will depend on the size and nature of the payments. The first £5 per week of any regular payment may be disregarded and a lump sum payment will not affect benefit unless it takes the claimant's capital over £3,000. An income of £1 per week is assumed for every £250, or part thereof, of capital between £3,000 and £6,000 in income support and family credit, and between £3,000 and £8,000 in housing benefit. No income support or family credit is payable if the capital held is over £6,000, and no housing benefit is available if it is over £8,000. However, capital held on trust, may be disregarded. For example, any payment made from a disaster fund because of a personal injury, which is placed on trust, is fully disregarded for at least two years and, in the case of a child, for as long as the child is a dependant. Any actual payments from the trust will be taken into account as income or capital in the normal way. In addition, any payment made to a third party will be completely disregarded if it is used to provide goods or services which are not already met by benefit. Officials continue to liaise with the administrators of the Hillsborough disaster fund and they have advised them of the social security rules.
The 1989 Social Security Bill will not result in any social security benefit being recovered from payments made from any disaster fund.