For a new IS claim does Child Benefit count as income any more? Client, lone parent, gets Incapacity Benefit (long term, no age additions)and Child Benefit. Has 16 year-old child with £5,000 capital.

Child Benefit will continue to be taken into account (subject to a possible £10.50 baby disregard) until CTC is awarded.
From that point Child Benefit is fully disregarded.

See paras 5 and 49 of Memo DMG JSA/IS 64 at...

http://www.dwp.gov.uk/publications/dwp/dmg/memletrs/memjsa64.asp

Relevant regs: regs 1 & 2 and Sched 1 para 23(b) Social Security (Working Tax Credit and Child Tax Credit) (Consequential Amendments) Regulations 2003 at...

http://www.hmso.gov.uk/si/si2003/20030455.htm