Local authority payments

Any payment made by or on behalf of a local authority within the last 12 months for any of the following is disregarded for 12 months from the day it was paid when calculating the person’s capital:
• children, young persons and others under certain legislation (children or young people in need and local authority looked after children or young
people), or
• welfare needs related to disability or old age (other than living expenses)

Arrears of benefit or compensation for late payment

Any payment received within the previous 12 months by way of arrears of or compensation for late payment of certain benefits is disregarded. Those benefits are:
• Universal Credit
• an abolished benefit, namely:
• income-based Jobseeker Allowance
• income-related Employment and Support Allowance
• Income Support
• Housing Benefit
• Council Tax Benefit
• Child Tax Credit
• Working Tax Credit
• a Social Security benefit which is not treated as unearned income for Universal Credit

Personal injury payment

A Payment received as consequence of a personal injury can be disregarded for 12 months from the day it was paid if any of the following apply:
• it is not held in trust
• it has not been used to purchase an annuity
• it has not been otherwise disposed of

Social Fund

A payment made from the Social Fund is disregarded for 12 months from the day it was paid.

Bereavement Support Payment

Payments are disregarded for the purpose of Universal Credit, other means-tested and contributory benefits and for the Benefit Cap.
The initial higher payment (plus any arrears if applicable) will be disregarded as capital for 52 weeks from date of payment. The following monthly payments will be disregarded as income within the month they are paid.
Any Bereavement Support Payment money left after 12 months will count as part of the claimant’s capital and may affect their Universal Credit payment.

Small Business Grant Fund (SBGF)

These should not be recorded as income but treated as capital and disregarded for 12 months.

Local Authority Retail, Hospitality and Leisure Grant Fund (RHLGF)

These should not be recorded as income but treated as capital and disregarded for 12 months.

Other Covid-19 specific grants (varies by county, region and sector)

Other grants or subsidies received, which HMRC treat as taxable income, must be declared as business income.
After this period, any monies left unspent will be treated as assets of the business, and if the business is still in existence, they will be disregarded.
If the claimant is no longer involved in the business, disregard business assets for 6 months from the date the claimant ceased business activities, or
longer if necessary.
If the claimant is intending to resume trading with the recovery from lockdown, we will apply the disregard of business capital.