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Grace Period for Benefit Cap

BHCAC
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Welfare Benefits Caseworker- Bosnia and Herzegovinia Community Advice Centre

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Joined: 23 August 2023

I have a client who was exempt from benefit cap as her husband was Self Employed and earning above the threshold. They separated and now she has a single claim- as she has no earned income the Benefit Cap has been applied.
We asked if grace period of nine months can be applied as he lived with her and earned above the threshold for the previous twelve months but UC have replied that as there is no break in the claim so the grace period would not be taken into account?
Does this seem correct?

Thanks

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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It is an interesting one, and not something I am sure was intended by the people drafting the Regs, but it does seem correct.

This is because she does not fall within either of Reg 82(2)(a)-(b), as it was a previous period of entitlement, and she was never in paid work.

Owen_Stevens
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I think that, in practice, DWP are likely to apply a grace period.  See guidance attached (from 2021)

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Owen_Stevens
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Owen_Stevens - 21 March 2024 01:59 PM

I think that, in practice, DWP are likely to apply a grace period.  See guidance attached (from 2021)

(at MR stage)

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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Very interesting, thanks Owen.

Rethinking it:
in a case where the partner had sufficient monthly earnings up until the point they separated, and a single UC claim started immediately after their separation, then I think Reg 82(2)(a) would apply.
Only where the partner’s earnings reduced below the threshold some time before they separated would there be an issue, as neither Reg 82(2)(a) nor Reg 82(2)(b) apply. Although hopefully they will allow it in practice.

BHCAC
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Welfare Benefits Caseworker- Bosnia and Herzegovinia Community Advice Centre

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Quick update- we requested a MR and reply was along the lines of their is no MR as Benefit Cap is set by the government- which is obviously incorrect- of course we can not ask for a MR about the existence of the Benefit Cap but we can certainly ask for as MR around it’s incorrect implementation. Following advice from CPAG we have again asked for a MR quoting the correct legislation and also sent a formal complaint.
Next stage would be tribunal- but this would take so long and ideally we can avoid.