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    "If you've been injured through no fault of your own you could be entitled to compensation. If you're unsure if you could claim, I recommend you call Accident Advice Helpline."

    Esther Rantzen

    P I Allowance


    If you are entitled to compensation for an injury obtained through an accident which wasn’t your fault, you may find yourself in receipt of thousands of pounds. This can lead to unique problems which you might not otherwise have encountered before. A P I Allowance can provide a solution to some of these issues.

    Why might I need a P I Allowance?

    If you are in receipt of the following means tested benefits, you will find that if you have more than £6,000 disposable income, these will be reduced. If you have more than £16,000 at your disposal, these benefits will be stopped altogether. Even if you received the money through a compensation claim, this will still count as disposable income.

    • Housing Benefit
    • Council Tax Benefit
    • Income Support
    • Income-Based Jobseeker’s Allowance
    • Employment and Support Allowance
    • Disabled Person’s Tax Credit
    • Working Tax Credit

    Keeping your compensation money in a P I Allowance helps you avoid losing your benefits. Additionally, with the new government legislation around long-term care, if you think your future may require residential care, placing your compensation in a P I Allowance now will ensure that your Local Authority Social Services is unable to access it to pay for your care.

    How does a P I Allowance work?

    At least two people are required to set up a P I Trust or allowance. This can be you and usually either an adult member of your family or a trusted friend. A solicitors’ firm can draft a Trust Deed for you, and once this is signed by you and a witness, a bank or building society joint account can be opened in the names of the Trustees.

    Once the bank account is up and running, it will not be possible to transfer money to your current accounts without the express permission of all the trustees. This is obtained through them signing the cash withdrawal form or cheque.

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    It sounds simple; is it?

    There are several steps to this legal process, and there are also quite a few traps to fall into, so it’s best to hire a solicitors’ firm which is experienced in setting up P I Trust Funds. You can either ask a local firm if they can do this, or it could be easier to call a national personal injury specialist firm, such as Accident Advice Helpline.

    Date Published: 24th August 2013

    Author: David Brown

    Accident Advice Helpline (or AAH) is a trading style of Slater Gordon Solutions Legal Limited. Slater Gordon Solutions Legal Limited is a company registered in England and Wales with registration number 07931918, VAT 142 8192 16, registered office Dempster Building, Atlantic Way, Brunswick Business Park, Liverpool, L3 4UU and is an approved Alternative Business Structure authorised and regulated by the Solicitors Regulation Authority with licence number 591058 and regulated by the Financial Conduct Authority.

    Disclaimer: This website contains content contributed by third parties, therefore any opinions, comments or other information expressed on this site that do not relate to the business of AAHDL or its associated companies should be understood as neither being held or endorsed by this business.

    No-Win No-Fee: *Subject to insurance costs. Fee payable if case not pursued at client's request.