Ex gratia and compensation payments

You may get an ex gratia payment if you've been harmed in some way. An ex gratia payment means there's no legal requirement to pay you or accept blame.

Compensation payments are also made because of harm done, or to settle a claim of harm. They are sometimes ordered by a court or tribunal, but can also be made through a settlement outside court.

Lake Alice payments

This includes:

• ex gratia or compensation payments for people who were patients at the Lake Alice Hospital
• ex gratia payments as part of the redress package for survivors of the Lake Alice Child and Adolescent Unit.

When these payments count as income or a cash asset

An ex gratia or compensation payment may not count as income and/or a cash asset if it is paid for a case of harm. These payments are usually made by:

• the Government
• agencies who provide services on behalf of the Government, or
• charities, incorporated societies, and faith-based institutions such as churches.

It can be counted as income or a cash asset if it's paid for other things like:

• a loss e.g. involving money, land, an asset or goods and services you've provided
• a personal grievance at work.

Some ex gratia and compensation payments may not count as income or a cash asset for the first 12 months after they're paid. Others, e.g. Lake Alice payments, may not be counted as income or a cash asset permanently. The amount of time a payment is not counted as income or a cash asset depends on who makes the payment to you and why.

It's best to talk to us so we can make sure your payments are right.

How your payments from us could be affected

You need to tell us about any ex gratia or compensation payment you get. If we decide that an ex gratia or compensation payment does count as income or a cash asset, it may affect your payments from us if:

• you get Accommodation Supplement, Temporary Additional Support or Special Benefit
• you save or invest the payment and earn interest or other income from it.