DWP clarifies Universal Credit position on protection pay-outs

The DWP was responding to an inquiry by the Building Resilient Households Group (BRHG) on how payouts from these insurance policies would be treated for means-tested benefits for working age people The group said the key change was that Universal Credit legislation made it clear that, if a person used their capital to pay off or reduce a debt, including a mortgage, they would not be treated as depriving themselves of that capital. "Once the capital has been used to pay off a debt, therefore, it will no longer be taken into account in the assessment of entitlement for Universal Credit,...