If the GC was awarded at the time as an ongoing entitlement (from the start of the PC scheme), the Pension Service were supposed to inform the LA to make the HB award at the same time (para 281 of the DWP's own "HB/CTB pension credit handbook").
If the GC was awarded retrospecively as part of the year 1 special rules, the LA was supposed top treat the HB award as made from the GC award date (para 460 of the above guide).
I have not had cases as you mention, but sometimes come across local authorities still uncomfortable with the idea that the £16,000 capital rules is no longer universal. It sort of reminds you of those soldiers, hiding on desert islands in the pacific, who refused to believe that the second world war had been over for decades.
Here is the web address for the above DWP handbook:
http://www.dwp.gov.uk/housingbenefit/publications/2003/pensioncreditr/hbctbpensioncredithandbook.pdf
When was the local authority first informed of the GC award, and by whom?
Steve
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