Benefit arrears and captial.

I have a client who received Disability Living Allowance and Income Support, Severe Disability Premium, arrears in 2010 of approximately £8,000.00 and the Department for Work and Pensions are now looking to apply tariff income to the claim. I had always understood that arrears of backdated benefit are disregarded for 52 weeks, which the Department for Work and Pensions accepts.

However, someone has said that Disability Living Allowance can be disregarded for a longer period. I am note that this is correct, and as usual the person could not source this idea. I have checked the regulations and cannot see anything that confirms this although confusingly the latest edition of the CPAG WB handbook at page 957 states, or seems to imply, that these benefits, which include DLA, are not included in the 52 weeks while I know that they are it is somewhat unclear.

Anybody have the definitive answer, please?

P.s. Please note that my client does not, due to his MH problems, go out much hence the capital not reducing.

Tony, that would make sense. My client should then only have tariff income for the period 52 weeks after the balance of the arrears was £6,000.00 +

And wow that was quick.

Duncan,

None of the paragrpahs refer to DLA though, interestingly?

I am referring to:  any payment specified in paragraph 6, 8 or 9 of Schedule 9 (other income to be disregarded);

Cheers.

Eeek…. be very careful when using http://www.legislation.gov.uk to look at legislation. It is not amended. A far better thing to do is either use the Sweet and Maxwell books, use CPAG online or use the DWP blue volumes- all of which are consolidated.

To use the DWP volumes properly you will need the SI number.

Given that there seem to have been 142 separate amendments of schedule 9 since it came into force looking at the original version is not a good idea (unless you want to advise on the law as it was in 1988).

The current sch 9 para 6 covers DLA mobility. Similarly sch 9 para 9 covers the care component- so they are disregarded as income. Then para 7 of sch 10 provides for disregard as capital for 52 weeks from date of receipt for lump sums of benefits to which either para 6 or 9 sch 9 applies.

I agree with Martin - ignore that website entirely for benefits legislation.

The (more or less) upto date “blue volume” for Income Support can be found on the following link (it’s a pdf file):
http://www.dwp.gov.uk/docs/a6-2501.pdf

Many thanks for this.