According to our friends at Turn2us, the grant should be treated as a ‘gift’ unless it increases our savings or investments to over the £6,000 limit. It’s more complicated if we have between £6,000 and £18,000 stashed away.

There is a factsheet about grants on the Turn2us website here: https://www.turn2us.org.uk/get-support/Grants-what-you-need-to-know

If a grant is not treated as a grant, appeal and make reference to the Turn2us information.