Stop including Armed forces terminal payout in the 'income assessment' for benefits

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After serving 18 years in the Royal Navy my husband was medically discharged in January 2017 with PTSD and received a terminal payout lump sum as everyone who has served does. However now it has come to light that this amount is included in assessment for benefits and therefore our ESA claim has been stopped until we can prove we did not deprive ourselves of capital.

I feel that whilst the Members of parliament always state who much they care for the brave men and women of the armed forces they are penalising them by insisting that their final 'thank you' for service has to be spent on what they deem acceptable before allowing them to claim certain benefits.

Shouldn't this money be ring fenced and allowed to be done with whatever they feel like they want to. With his payout we paid the majority of our debts off and updated out house to make it more comfortable to live in, that was it. No luxury holiday, no fancy car, no designer clothes, nothing. In fact our only holiday will be camping next Weekend, that cost £38.50!!!!! But now the DWP say we have deprived ourselves as capital, but as they are reviewing further information we are unable to appeal the decision as yet so we are stuck in limbo.

After serving many years our men and women of the armed forces are being penalised for it by having a pension or medical payout upon discharge. How can this be fair?