Important Decision on Personal Injury Compensation & State Pension Credit
Law Centre NI Successfully Represents Client Before Tribunal and Tribunal of Commissioners
Tribunal Update.
Law Centre NI is pleased to highlight an important clarification in the law following our successful representation of a client at both the Appeal Tribunal and subsequently before the Tribunal of Commissioners in JMcA v Department for Communities (PC) [2025] NICom 26.
This decision confirms people of state retirement age retain strong protections if they receive personal injury compensation, even if they use or reinvest this capital.
Read the full decision of the Tribunal here
”It is Law Centre NI’s role to support individuals and the advice sector with complex matters. We are glad to have been able to represent this client in this complex matter and help provide an important clarification of the law for the wider community going forward.”
Owen McCloskey,
Head of Social Security.
What the case involved
Our client received a personal injury award and used part of the compensation to buy their former Housing Executive home at a discounted rate. The Department for Communities treated the value of that property as capital when calculating State Pension Credit (SPC), reducing entitlement.
Law Centre NI argued before the Tribunal that because the property was purchased using personal injury compensation, it should be disregarded under the State Pension Credit Regulations.
The Tribunal agreed, and when the Department appealed this decision, it was listed before a Tribunal of three Commissioners as it involved a question of law of special difficulty. Law Centre NI represented our client at this hearing
The Department had initially argued that once the personal injury compensation had been used or reinvested in property then it would lose the personal injury disregard. Skeletons were exchanged before the appeal hearing, and the Department applied to withdraw their appeal, now accepting that the Tribunal had been correct. The Department referred to previously unavailable DWP guidance to support its position. Law Centre NI consented to the withdrawal application but requested a decision should be issued so that others could benefit from a clarification in the law. We are grateful to the Commissioners for issuing a written decision in this case.
Key outcome
A disregard equal to the amount of capital awarded as a result of a personal injury is indefinitely retained and applied to future assessments of income for State Pension Credit.
This means:
- Personal injury compensation continues to be disregarded indefinitely, not just for a limited period.
- The disregard applies even if the compensation is converted into property or another asset.
- The amount disregarded is fixed at the original compensation amount.
- Any increase or decrease in the value of the asset does not change the disregard.
This confirms the more generous protections intended for pension-age claimants under the State Pension Credit system.
Why this matters.
This clarification strengthens the rights of older people who receive personal injury settlements and ensures they are not disadvantaged for using their compensation to secure housing or financial stability.
It also provides clear guidance for decision-makers and advisers across the system.
Need advice?
If you need support or guidance on how compensation affects social security benefits, our welfare rights advisers can help.
If you need to speak with one of our advisers at admin@lawcentreni.org or telephone (028) 9024 4401