Personal injury Compensation taxable? scare tatics?

[laureano97]

My girlfriend slipped on water while in Tesco, she damaged clothes and hurt herself and is constantly going to the doctors regarding the pain and to see if they can stop the leg dislocating

Tesco has admitted liability and sent a letter offering £400, but within the letter it states

"i also need to register your claim with the department of work and pensions (DWP), so when replying please provide your national insurance number"

Why would they ask this, and why would they have to notify the DWP, we have nothing to hide but compensation is not an income so its not taxable i thought? are the trying to scare us from getting more money,

i dont know if we should just go to a no win no fee person

[jorel]

Compulsory by law I'm afraid. it is not taxable, no compensation claim is, BUT if she is receiving income support then it can be deducted. Your g/f needs to instruct a No win no fee lawyer (even though I hate them) as £400 is pants, especially if she is going to have a long term problem with her leg.
UK

[otis]

Hi Thumbboy i think its normal for them to ask for the national insurance number, My brother also had a accident like your girl friend these no win no fee lawyers http://www.no-win-no-fee-solicitors.co.uk told him it was not taxible told him it was not taxible so do not worry. If you wanted a solicitor to confirm this, I agree with ( Kernow Lady ) its worth getting free legal advice just to be sure. I would not accept that £400 she might be able to claim a lot more than that, she might need the extra money for treatment. Good luck.