hello guys; I have a question with regards to the bank charges refunded by banks (as a settlement of a complaint NOT as an effect of a court order) and the effect of these settlements on IS/HB. Some of those settlements are quite sizeable but vast majority less then £6000. These are not compensation payments, there are merely refunds. They are paid in one lump sum. Any opinions?
Many thank.

Bit like any other rags to riches story - if the money is in your bank account then it's counted as your capital. The only usual exception to that rule is arrears of Benefits paid in a lump sum, which should be ignored for up to 12 months.

Reluctantly I have to agree with Mike, I ran a case to the Commissioners a number of years ago regarding arrears of capital and failed miserably.

However any thoughts on extra compensation from the banks due to loss of benefit?

Hi guys; thanks for your replies. I suppose in some cases it may cause a loss of benefit- but such cases would be rare as the amounts I've seen so far are not crossing the threshold but if over £3000 the claimant would need to inform the HB office, am I correct?

The lower limit is £6K and has been since April 2006 so no worries if less than this

Of course! thanks for that.