If you get a lump-sum workers' compensation or other disability payment in addition to, or instead of a monthly benefit, the amount of the Social Security benefits you and your family Page 5 4 receive may be affected.

Does getting compensation affect my benefits?

If you receive a significant 'lump sum' compensation payment as part of a personal injury claim, then this can affect your entitlement in the future to receive certain means tested state benefits. Means tested benefits take into account your income, savings and capital assets to assess your eligibility to claim.

Do I have to declare compensation to DWP?

When you make a personal injury compensation claim, the insurance company receiving your claim must inform the Department of Work and Pensions (“DWP”) of the claim. If you receive an interim payment or final settlement, the insurer must inform the DWP. ... The compensation is not ignored permanently.