How it may affect your tax credits/Universal Credit (UC) award. If you are in receipt of tax credits, do not forget that the interest part of your PPI compensation is treated as income from savings and might affect your tax credits award depending on the amount you receive and what other income you have.

Will PPI claim affect my benefits?

If you have just received the PPI windfall before the assessment, then this will likely be impacted during your assessment. If you're currently receiving means tested funding it is unlikely to have an impact unless it is a substantial sum of money.

Will a tax refund affect Universal Credit?

Your Universal Credit payment gradually reduces if you earn more money over a certain threshold. ... So if your tax refund takes you over a certain threshold, this will impact on your Universal Credit payment for the assessment period.