Criminal injuries compensation

Sometimes a relevant child has received money from the Criminal Injuries Compensation Authority for injuries the young person suffered as the result of a crime – such as child abuse.

The Guidance to the Children (Leaving Care) Act says that their local authority, which has a duty to support relevant children financially, can not take that compensation money into account in deciding how much money the young person needs. Children Leaving Care Regulations and Guidance, ch. 9, para. 4. 

In addition, the local authority is expected to arrange for the young person to receive sound financial advice about what to do with the money.  This is particularly important because when the young person becomes 18 years old, if they apply for income support benefits, savings over £3,000 will affect their claim.

The local authority will take into account any other money that relevant children may have, such as through inheritance or working.  The local authority should follow the Department of Work and Pensions’ income support regulations - see Income Support (IS) (General) Regulations 1987.  Under those regulations, savings over £3,000 will be taken into account in deciding how much money the young person needs.