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Forum Home  →  Discussion  →  Work capability issues and ESA  →  Thread

Late Income

roecab
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Welfare benefits supervisor - Roehampton CAB

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We have a client who became sick and went off of work. The employer gave the client an SSP1 and so ESA was claimed, and awarded. However five months after the client stopped working due to sickness, the employer has sent her a letter to state that the company has adopted the Steinhoff Policy and this discretionary policy means 3 months full and 3 months half pay.

As such the client has now been paid sick pay for the period that IRESA has been paid

Does anyone know how the late receipt of this income would impact on ESA, if at all?
If it is discretionary does this mean it is a voluntary payment so not income at all?
Any ideas on this would be greatly received,

Thanks in advance

Surrey Adviser
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Benefits and debt adviser - Esher CAB, Surrey

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If tax & NI have been deducted from the payment I think it’s a reasonable assumption it’s income & not voluntary.  In my view the only safe thing is to report the details to DWP.  I would guess they’ll want the ESA back.

Dan_Manville
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Mental health & welfare rights service - Wolverhampton City Council

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Derek - 14 October 2014 05:36 PM

If tax & NI have been deducted from the payment I think it’s a reasonable assumption it’s income & not voluntary.  In my view the only safe thing is to report the details to DWP.  I would guess they’ll want the ESA back.

But they shouldn’t get it. As long as claimant didn’t know they would get the payment how can it create a recoverable overpayment? I can see no misrep or failure to disclose.

[ Edited: 15 Oct 2014 at 09:48 am by Dan_Manville ]
Gareth Morgan
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CEO, Ferret, Cardiff

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Are they still getting the benefit?

Brian JB
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Advisor - Wirral Welfare Rights Unit, Birkenhead

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Potentially, the income related ESA paid for the period of the income now paid may be recoverable under Section 74(1) of the SS Administration Act

roecab
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Welfare benefits supervisor - Roehampton CAB

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Sovietleader,

So company sick pay would be prescribed income?

Also has anyone heard of something called Steinhoff Policy and Procedure? It is under this basis that our client was paid the sick pay

Cheers

Brian JB
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Advisor - Wirral Welfare Rights Unit, Birkenhead

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I think it would be prescribed income as the definition is very broad.

I haven’t heard of the Steinhoff Policy and Procedure though…..

Steve_h
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Welfare Rights- AIW Health

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After a discussion with my friend google I found this

http://www.steinhoffinternational.com/3-strategic-approach.php