Yes. You should be honest about all your finances. If you are lucky the IP will ignore it. However, if you are allowed to hang on to it, at least on the face of it, use it for an emergency fund (you will need it at some point) rather than a holiday.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk