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Top Housing Benefit & Council Tax Benefit topic #9099

Subject: "calculation of earnings" First topic | Last topic
Tony Bowman
                              

Welfare Rights Advisor, Reading Community Welfare Rights Unit
Member since
25th Nov 2004

calculation of earnings
Fri 05-Mar-10 12:11 PM

SA/7437

Can anyone point me towards the regulations which specify the period for which a payment of earnings is taken into account for HB.

Specifically, my client notifed HB that he was receiving his first pay from a new job on 25 September. However, he failed to reply to a question asking when he started the job and his HB was 'cancelled' from the beginning of the month.

Advice in CPAG suggest that the payment is taken into account for a forward period from the date it was paid, but I'm unable to confirm this in the HB regs.

Thanks,

  

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Replies to this topic
RE: calculation of earnings, chrislpl, 05th Mar 2010, #1
RE: calculation of earnings, Kevin D, 05th Mar 2010, #2
RE: calculation of earnings, Tony Bowman, 05th Mar 2010, #3

chrislpl
                              

Welfare Rights Department, Linskills Solicitors Liverpool
Member since
24th Nov 2009

RE: calculation of earnings
Fri 05-Mar-10 12:48 PM

Dear Tony,

Please see reg 29(2) Housing Benefit Regulations 2006 about a local authority "estimating" earnings at the beginning of a claim when someone comes off benefits into work, whilst awaiting proof of earnings.

Your client's case may be similar to that in a recent UT Decision - CH 978 2009. I particularly like Judge Mesher's commentary at Paragraph 28 - "The claimant did not send in any payslips. However, the consequence of that could not have been the withdrawal of the claim on the assumption that the claimant did not wish to proceed with it. Even if the letter of 20 November 2007 had been properly issued under regulation 83(7)(a), that could not have followed. There would have to have been a decision to disallow the claim. Standard wording of this kind is still often seen in letters from local authorities, apparently left over from a much earlier and mistaken view of the law, and should no longer be used. The excuse of not being able to change the letters provided in computer packages has run out of whatever validity it once had. As it is, the continued use of such language gives the appearance of an attempt to intimidate claimants by misstating the legal position."

I hope that this helps.

Regards

Chris

  

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Kevin D
                              

Freelance HB & CTB Consultant/Trainer, Hertfordshire
Member since
20th Jan 2004

RE: calculation of earnings
Fri 05-Mar-10 12:53 PM

Hi Tony. The default position for all income is that is falls to be taken into account over the period it is in respect of, irrespective of the date of payment. An obvious exception is Tax Credits where the method of calcuation is expressly directed.

The above comes with the caveat that the method of calcuation is subject to averaging, but if the clmt is earning from "date A", earnings are taken into account from that date even if payment isn't until "date B".

There are a few CDs which may be of interest:

CH/2349/2002 (para 11) - earnings
CH/1561/2005 (para 22) - old WFTC
CH/0325/2003 (para 3) - pension
CIS/0683/1993 (para 11)
CIS/0590/1993 (paras 14-16) - earnings
R(SB) 21/86 (para 12) - earnings




  

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Tony Bowman
                              

Welfare Rights Advisor, Reading Community Welfare Rights Unit
Member since
25th Nov 2004

RE: calculation of earnings
Fri 05-Mar-10 12:56 PM

Very helpful, Chris and Kevin. Thanks to you both. I feel somewhat embarrassed not to have found the reg myself, but will put it down to that Friday feeling...

Thanks again,

Tony

  

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Top Housing Benefit & Council Tax Benefit topic #9099First topic | Last topic