CTR - is a UC nil award an award?

I’m based in Wales, and generally think we are lucky to have a sensible national CTR scheme.  Entitlement is calculated based on comparing income to applicable amounts, with different figures for pensioners, working age, ESA claimants etc.  Cruicially if someone is on UC then their total income is compared to their UC maximum amount.

I’ve come across a client who applied for UC and CTR.  Her UC claim was unsuccessful.  Our HB department took the figures from UC and calculated her excess income.  They applied the standard 20% taper and concluded that her income was too high to qualify for CTR.

However, she’s on enhanced rate PIP daily living and meets the conditions for an SDP.  If they had used the legacy benefit figures she would have qualfied for some CTR. 

The legislation says:

Applicable amount: persons who are not pensioners who have an award of universal credit
26.—(1) Subject to sub-paragraph (2), in determining the applicable amount for a week of an applicant who is not a pensioner—

(a)who has, or
(b)who (jointly with a partner) has,
an award of universal credit, the authority will use the calculation or estimate of the maximum amount of the applicant, or the applicant and the applicant’s partner jointly (as the case may be), subject to the adjustment described in sub-paragraph (3).

So, does a nil award count as having an award of UC?

There is a UT decision pending on this very point for the purpose of “passporting” to maximum HB for temporary or specified accommodation.  While the UT has no jurisdiction over CTR, I would expect the decision to be regarded as clearing the matter up for CTR purposes as well.

I don’t think someone whose income is too high to get UC has any kind of award - they simply do not satisfy the entitlement conditions in the 2012 Act any more than Rishi Sunak does. But we’ll see what the UT says.

Thanks HB Anorak, I’l look forward to reading the UT decision.