this is a pretty simple quiestion but i am starting to get quite confused.

client was working full time and now hours reduced to 12 so they have hb entitlement. their last salary (paid on 31st of june) though is their last full time one.

they have claimed hb but will the full time slary be averaged out for the claim to deny them for the current period?

when they client was paid on 31st of june that was the exact hours they had worked i.e. no arrears etc and they have immediately started working 12 hours.

from my reading it seems the lastw age will be averaged out for hb purposes.

if the new reduced hours are the new working arrangement, could your client obtain a letter from the employer stating the new hours and pay rate and from what date they came into effect. this would prevent the usual delay of waiting for pay slips reflecting the reduced pay

the last months pay (june) covers the month of july

the letter shouldnt be an issue as that was the way the good news was given to him of his reduction in hours.

technically speaking he was paid for what he worked i.e. had he had he left the post totally on the last day of the month he would have been totally paid up but i think it will be taken into account for hb/ctb for ongoing rent liability.

just wanted to confirm that as i started to tie myself in knots a bit.

Thu 02-Jul-09 07:15 PM by stainsby

The calculation of earnings has to be done in a way that gives the best estimate of likely earnings in the future benefit period (HB Reg 29)

The principles were emphasised by Mr Commissioner Jacobs as he then was in CH/1780/2005

It depends whether the the client reduced his hours below 16 before the first day of entitlement to HB - in reality, I think it would mean that a claim was made on 30th June or later. If the claim is after the last day of the period when he was working 16 hours or more, the earnings from that period are disregarded (paragraph 1(c) to Schedule 4 HB Regs). I don't think reg 29 is worded very comfortably in this case, as it usually looks at earnings before the benefit week in which the claim is made, unless a person hasn't been in his employment for the past periods normally required to produce an average. Arguably, in such circumstances, the income from earnings is nil, until he receives the new lower payment. If the claim pre-dates 29/6/09, an average of earlier earnings will be used. If that produces a "nil" result, re-claim after 29/6/09.

(Brian)