Help! Although giving benefit advice is part of my job, I have not much experience yet and usually work in conjunction with the local CAB advisor, but she's away!

I have a client who claimed IB in August 2000 when she was 20 years old. She was turned down because she did have any NI contribuions and was awarded IS. She has received this continuously ever since. She fulfills all the criteria for IB under youth rules for those under 25 but in education. She has also just passed her PCA in April. She was advised by the local dss office (which does not handle IB claims) in 2001, 2002 and 2003 that she would not claim IB because her claim began before the rules were introduced. I contacted the office who deals with local IB claims and was told she could claim (or at least they thought so!) but the local office still insists she can't. Who is right?

Also the IB department mentioned that they thought that she should have received a letter at the time, but that there was a problem with their computers(!) and not everybody who might be eligable received one. Does anyone know what the guidlines were for the introduction of the youth rules?

Also, when would it be best to claim from if she is eligable? From when the misdirection was given or right back to April 2001? What are the best grounds for this?

Hi,

So long as your sure your client meets the education rules in reg 15 SS(IB)Regs, it appears as though she is eligible. Has she ever actually made a claim or just enquired? Do you want a second opinion on the under 25 route? If so, post up details of course of education including start and stop dates and your clients DOB.

I would advise to make a claim and consider appealing if necessary.

On the question of when to claim from, I would say now and take advantage of the three month automatic backdating. To get any further backdating (ex-gratia payments) would require your client to show that she had been misadvised.

However, before considering this route, it might be worth comparing IS rates with the IB rate (calculating from when LTIB would be payable) to see if there's been any actual loss. LTIB is more than IS+DP for a person under 25 so no IS would be payable. Has client actually had any gains by being on IS over IB? For example, free prescriptions, HB/CTB.

Hi

Thanks for your reply. I have been a little fogged over this, it is probably perfectly straighforward, but giving advice on benefits is only a very small part of my job, I usually give much more general advice and refer any problems to the local CAB advisor.

I would particularly like an opinion in relation to "the attendance did not end earlier than the beginning of the last two tax years governing the claim to IB"

My clients DOB is 13/05/1980 and she attended University from September 1999 to April 2000. She claimed JSA in June then made a claim for IB and IS. She was awarded IS from 05/08/00 which has linked ever since. I have been assuiming that the benefit year in question would therefore be 2000 and the relevant tax years 97/98 and 98/99 and that she would be eligible since she attended after these years but a colleague seems to think that she should have attended within this period ie before 6 April 1999. Or am I hopelessly confused and the benefit year should be 2001?

As I understand it if a claim was put in now she would be ineligible because the attendance would be before the relevant tax years 02/ 03 and 03/04.

She has made no other claim for IB since 08/00, the local DWP adtmits that this was because they twice gave her wrong information so I would be hopeful of an ex gratia payment if she qualifies.

As to whether she would be better off claiming IB there wouldn't be much difference, however she has definately suffered loss in the past as she has only recently moved out of her parents. She herself is keen to claim IB if possible, mainly because of any ex gratia payment, but as I see it, this is fair enough.

Any help is much appreciated.

Hi Amanda,

This looks fairly straightforward on the face of it.

Your client 'registered for' and 'started' a full-time course of education at least three months before her 20th birthday. You say she attended so that takes care of the 'attending within a term of registering' provision. These three stipulations govern who counts as 'a person under 25' for IB purposes. The fourth, the one about tax years simply limits when a claim can be made. The restriction says that for a claim made at any particular time, lets say 2004, the course must have ended no earlier than the start of the relevant tax years. For 2004 benefit year (Jan to Jan) the relevant tax years would be April 2001 to April 2003. So, to take advantage of this now, your client would have to show that she finshed the course no earlier than 7 April 2001.

This is not the case (she finished April 2000), so your client cannot claim IB now. She could however, have claimed anytime from April 2001 (when the IB youth rules started) up to the end of 2003 (assuming course finished after 6th April 2000. If it finished before 6 April, then she would only be able to claim up to end 2002 as the last two COMPLETE tax years would be April 1999 to April 2001).

Lookin at possible ex-gratia payments, the decision refusing IB in 2000 was OK because IB in youth didn't exist then. You'd need to look at when further enquiries were made. If they were between April 01 and end 2003 (or 2002 - whichever applies) then there may a case for ex-gratia payments. Nevertheless, your client should realise that any payment she MIGHT get, would be IB less IS received and so it still might not amount to much.

Assuming the second enquiry was in April 2001 then LT IB would be payable from April 2002 Lost money would be the difference between IB and IS (DP on IS would already be payable). for each week from April 02. Somewhere over £500.

Your client should compare a lump sum that MIGHT be that much (bet your bottom dollar the DWP will argue the toss) against what your client might be losing in prescriptions, HB, CTB, dental treatment, sight tests, etc...

Sorry this a bit long winded - hope it all makes sense.

Hi Tony,

Thanks for that. That was basically what I originally thought but the DWP office that deals with IB local claims seemed to think (they rarely seem sure of anything!) that any claim for IB from April 2001 would link with the IB claim in August 2000 (even though IB wasn't awarded).

Looking at any possible ex gratia payments, I have two lines to pursue there. The DWP concerned with IB claims has admitted to me that my client should have received a letter at the time of the changes inviting her to apply for IB but that there was a problem with their computers and not everyone entitled to claim received one. Also the local DWP admit they gave her wrong advice but can't seem to say when. My client alleges that this was in April/May 2001 and again sometime in 2002 but this will be very hard to prove.

My client has also lost out financially in respect to local Chrismas bonuses paid to people who receive IB, this amounts to over £700 (assuming she had received IB since April 2001 but I have yet to discover whether this would be considered as financial loss, although I can't see why not, my bed time reading will be the maladministration guide!

Anyway, thank you for taking timeout to help me. I'm going to take your advice and discuss again with my client whether IB will really leave her better off in the future.

Thanks again, Amanda