her PI solicitor should be advising her on all of this.
briefly:
1. if your claim for damages includes a claim for loss of earnings, and you had been on an earnings replacement benefit (such as IS, ESA, like that), then the relevant amount is repaid to the DWP OUT OF THE RELEVANT DAMAGES (that is, the damages for loss of earnings).
2. if your claim for damages includes a claim for care costs, and you had been on a relevant benefit such as DLA CARE, then the relevant amount is repaid to the DWP out of THE RELEVANT DAMAGES
and ONLY in relation to benefits received up to the date of settlement, and for no more than 5 years from first claim to beneft.
and so on in relation to any benefits she has received as a result of the relevant accident (and not benefits she's been on because of something completely different!).
if no damages for those items then no recovery from her damages - her general damages are protected (that is, the damages for pain suffering loss of amenity, handicap on the labour market). Doesn't come out of any future loss claim either.
PI trusts are irrelevant to this, and can't protect the position for the past.
they can only protect the position for the future in relation to means tested benefits such as IS.
I repeat, her solicitor should be advising her directly on the particular circumstances of her case.
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