Benefit Cap

Hi not sure which section to post this in??? Does anyone know if Free schools meals are included in the Benefit cap calculations? My client has been told she will have a short fall of £120 per week but i work it to £95 so just seeing if i have missed anything off before i tackle the issue.

Thanks
Carolyn

The following benefits aren’t included when working out whether your total benefit income is more than the cap:

•Council Tax Reduction
•Pension Credit
•State Retirement Pension
•one off payments made by your local authority to help you out in a crisis
•Winter fuel and cold weather payments
•a short term advance from the DWP to help you out over a crisis until your first benefit payment
•non-cash benefits, for example, free school meals
•Statutory Sick Pay
•Statutory Maternity Pay, Paternity Pay or Adoption Pay.

http://www.adviceguide.org.uk/england/benefits_e/benefits_the_benefit_cap_e/benefits_the_benefit_cap_and_housing_benefit_e/the_benefit_cap_and_housing_benefit_which_benefits_are_included.htm

Hi regarding the November 2016 cap - do you calculate the benefits people are actually getting i.e JSA with a deduction for a BL,and CTC with deduction for an over payment or do you calculate their Applicable Amount? Also I a have client who has been working for the last 52 wks but only earning £100 per month and has no entitlement to WTC - is she exempt from the cap?

Hi VS,

Generally, the LA is obliged to use the amount of benefit that a person is entitled to (not the amount in payment). (75C HB regs)

This also, from HB A15/2013

“The amount to be used in the calculation is the full award before any reductions are made for repayment of overpayments and payments to third parties.
However, If earnings, capital or other income are taken into account in the assessment of a claimant’s benefit the amount to be used when calculating the
total household income for Benefit cap is the award of benefit less any deductions for earnings, other income or capital.

Where the claimant is subject to a benefit sanction the amount included in the cap calculation is the full award before any reductions are made for the sanction”

Someone will be exempt from the cap if they are entitled to WTC (not necessarily receiving it). They would need to make a claim, too, so they can be awarded WTC at a nil rate. This works for people working the required hours for an entitlement to WTC to apply, but whose income is too high. (75E HB regs)

If the client is still working, the 52 weeks is, I think, irrelevant. If he or she has stopped working, and it’s a question of whether or not the 39 week grace period applies, it doesn’t matter whether they’ve been entitled to WTC, as long as they’ve been working for pay, or expectation of pay, for 50 weeks out of the previous 52, and they were not entitled to IS, JSA or ESA in at least 50 weeks of the 52 immediately before employment ceased.

Thanks Lee - the tenant has been working for the last 52 weeks - only three hrs per wk thought so NOT eligible for WTC. Is she still exempt as she has been doing some work for the last 52 weeks?
Regards

Hi VS- i’ll send you a direct message, and you can give me a ring if you want!

Thanks Lee - my e-mail is .(JavaScript must be enabled to view this email address)