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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

UC - full service - Tax Credits and ESA

clive
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Newcastle Council Welfare Rights

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Total Posts: 122

Joined: 22 June 2010

UPDATE/RESOLUTION:

The JCP replied to the MP letter that was sent. They confirmed that tax credits were correct to end the claim and that she needs to claim UC to get the lost income.  The letter also said that she should be transferred to the LCW group within UC and should not have to start the LCW/LCWRA process again.
Clive

As usual, its never simple (to me!)

Single parent on HB, CTC only and ESA.
Before UC full service/digital (FS) came in (25 May), man moved in and they notified ESA and they became ESA couple. She did not get round to notifying HMRC till after 25 May. (Not sure it’s relevant but it was a ‘live service’ area before that).

Tax Credits:
1) Am I right to think that because she has become a couple - that means a new claim for TC and that closes down her TC? (with option to claim UC).
HMRC told her that but JCP told her she remains an ESA claimant!

2) There appear to exceptions to this. See for example, the Memo ADM 14/16
[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/534895/adm14-16.pdf ] which says this does not apply if “Claimant already entitled to TC” (para 16) and refers to WRA 12

Am I right to think this is not a contradiction but simply to protect existing TC claimants against losing out on some TC during to changeover to UC?

3) She told HMRC after the changeover to full service UC 25 May - but the change in circs occurred before.

CPAG p. 1437 last sentence “You cannot make a new claim to Tax Credits if you or your partner are entitled to UC (which they are), even if your claim could be backdated to a date before you were entitled to UC – ref. Reg 6 UC(TP) regs.

Am I right in thinking therefore it’s the date she tells them, not the date of the change?

ESA:
Jobcentre have told her that if she claims UC she will lose her entitlement to WRAG and have to ‘start again’. We are concerned about her mental health here (fearful of medical)  and she therefore is refusing to claim UC (so losing out on CTC equivalent).

I have asked for the legislation/guidance on this but in meantime…

CPAG page 996 says you are treated as satisfying LCW test under UC if you have already been assessed as having LCW for ESA. Ref. Reg 39(1)(a) UC regs 213 No. 376.
And,
Reg 9 of Universal Credit (Transitional Provisions) Regulations 2014 (SI.No.1230/2014) - transition from old style ESA - repeats this So it looks like they shouldn’t reassess
But…
sub para (7) says that where someone is so treated “the Secretary of State may at any time make a fresh determination as to these matters, in accordance with the Universal Credit Regulations.”

Does this mean that if she claims UC JCP have the discretion not to include the LCW element until they send her for a medical etc? Seems to have implications for everyone on ESA.

Thank you

[ Edited: 26 Jul 2016 at 09:18 am by clive ]