HC Deb 18 July 1991 vol 195 cc250-1W
Mr. Dunnachie

To ask the Secretary of State for Social Security (1) what goods and services the trustees may not pay for, on behalf of a victim of violent crime in receipt of a criminal injuries compensation award, without affecting his or her income-related benefits;

(2) what restrictions are applied to the way in which criminal injuries compensation awards may be spent by (a) people in receipt of income-related benefits, (b) people in paid employment and (c) people on unearned incomes; and if he will make a statement;

(3) on what items a victim of violent crime in receipt of a criminal injuries compensation award may not spend a weekly amount without affecting his or her income related benefits;

(4) if he will state the maximum weekly amount which a victim of violent crime may receive from trustees without affecting his or her income-related benefits, after receiving a criminal injuries compensation award and placing it on trust.

Miss Widdecombe

Compensation payments from the Criminal Injuries Compensation Board are normally made directly to the injured person. There are no restrictions on how he or she may spend these payments. However, if a person disposes of an award for the purpose of becoming entitled to, or increasing entitlement to, an income-related benefit, the independent adjudicating authority may decide to treat the person as if he or she still has the capital.

Where a compensation payment is placed on trust, the value of the fund is disregarded indefinitely in the income-related benefits. The first £10 a week of any regular discretionary payment made by the trustees is completely ignored, provided that this disregard has not already been allowed on another income, such as a war disablement pension. The injured person can spend the disregarded income in any way he or she chooses without affecting entitlement to benefit.

In addition, regular discretionary payments made by the trustees to an injured person or to a third party for goods and services are normally disregarded unless they are intended or used for accommodation charges already met by benefit, food, ordinary clothing or footwear, household fuel, the community charge or water charges. Any payment which is so intended or used will be taken into account, subject to a disregard of £10 a week if the disregard has not already been used up elsewhere.