Backdated non-disability benefits impacting eligibility for other benefits?

Are there any rules about whether backdated payments from non-disability-related benefits can be disregarded for other benefits?

We have a client who has just received over £10k in backdated Child Benefit (as it’s been paid for 2 children for about 5 years, back to the date she first claimed asylum in the UK). She also receives UC with no earnings.

She also has yet to be evicted from Home Office accommodation and so we’re particularly concerned that when this eviction comes and the inevitable homelessness application etc., this will affect her ability to receive housing benefit also (as well as the council saying she has the means to accommodate herself with this money.

You are looking for the UC capital rules. Your client has capital of £10k. As this is between the lower capital limit (£6k) and higher capital limit (£16k), it would usually result in a tapered reduction of her UC.

However, because the funds are arrears of ChB, they are disregarded for 12 months following receipt so should not affect her UC at all.

UC is then a passport to full HB so if her UC is still in payment, she would also get her HB.

On the council’s homelessness duties - they might wish to encourage her to use the funds to try to address her housing situation but having the money won’t change the council’s duties towards her.