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DWP guidance advises DM that the max. rate of CTC should be taken into account as income when a claimant (or partner) claims IS/JSA after April 03 (i.e. they have an award of CTC because they were working but are now unemployed / incapable of work).
However, the rate of CTC actually in payment to claimant is less than the maximum (due to income when working etc).
The effect is that claimants total income is less than 'poverty level'as IS/JSA take max CTC into account as income.
We now have cases awaiting tribunal hearing. We are arguing that SofS decision is erroneous in law because his interpretation of what is means by CTC entitlement in Reg7(1) is wrong - it means the actual award made by IR and in payment rather than the maximum rate of CTC.
Whilst it is in claimants interest to report the change of circumstances to IR for a new CTC assessement to provide maximum CTC it is not a change that has to be reported (unlike in MTB's). Thats without the administrative delay of IR actually re-assessing and paying max. CTC.
Clearly this is a national problem. Have other organisations already had cases heard before tribunal - what has been the outcome - any cases advanced to commissioners yet?
As the Secretary of State is a local MP we have raised the issue with him on behalf of claimants who are also his constituents - in the mean time feedback from other advisers would be helpful. We know CPAG are also interested in this issue (hope I'm not misrepresenting CPAG's position).
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