Does an injury compensation payout affect pension payments?

My mum may receive an injury compensation payout, potentially £50-100k but we really don't know how much at this stage.

She's 65 and currently draws her UK state pension, receives pension credits and the winter fuel allowance when applicable.

I understand that any compensation is non-taxable, but what we'd like to know is whether receiving a compensation payout will affect her state pension, pension credits or winter fuel allowance.
Anonymous User
Anonymous User
Asked Jul 20, 2011
"State benefits are deducted from personal injury compensation amounts. If you received certain benefits from the Government as a result of your personal injury, the Department for Work and Pensions will recover from your compensation an amount equivalent to the relevant benefits you were paid."

From:
http://www.balindaandco.com/Blog/How-State-Benefits-Reduce-Personal-Injury-Compensation-Amounts/
Rob
Answered Jul 20, 2011

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