DLA entitlement once in care?

Hi folks : I have a “Monday morning” question for you.

I have a client who has a seriously disabled son who she gets CB,CTC and DLA for, and also WTC as a lone parent

He is in approved further education and is 18 next month so DLA.CB, CTC and WTC would normally continue, however he has just been placed into permanent residential care as his mother can no longer cope with his disabilities.

My question is : As he is still in approved further education would his mother still be entitled to any CTC or CB (and as a result WTC). She is concerned that he may not be able to claim ESA as he is still in education, and if no CB or CTC available what will he have to live on? He gets HRM and HRC DLA , which is normally withdrawn if in hospital for 28 days, but how would his stay in residential care affect his award?
I know the answer to this is staring me in the face, however like i said earlier : It is Monday morning!

Hi

Tax credits payments will normally cease for a child in residential placement paid for via public funds. However there is an exception where a young person is in a residential placement “solely” because of the their disability (see CPAG Handbook page 1248) – in these cases the parent can continue to claim tax credits for that child, albeit the severe disability element may cease as a result of the suspension of the DLA care component (after 28 days). 

Child Benefit continues to be paid in respect of a child in residential school, and can also continue where a child is in residential care so long as the parent continues to spend money on the child’s behalf. The care component of DLA is suspended after 28 days in publically funded residential care (unless funded under NHS continuing care rules) but the mobility component is unaffected.

The alternative to tax credits/child benefit would be an ESA claim. The young person should be eligible for irESA in full-time education so long as he gets the mobility component of DLA (as this is not suspended in res care).  Whether ESA in youth is a possibility will be dependent on the hours and type of education – i.e. the 21 hour rule (bearing in mind that ESA in youth is being scrapped for new claims from 30th April). 

He will need a better off calculation to see whether tax credits/child benefit or ESA is best route. However if the LA are likely to take ESA into account for charging purposes once he turns 18, I would have thought that tax credits/child benefit would be the better option.

Derek

Sorry to resurrect this one so late in the day. ESA reg 18 says that someone will not be treated as receiving education if they are entitled to DLA. If they don’t get paid DLA (because entitled to care component only and been in residential shool for 4 weeks+ so payment suspended) would they still not be classed as entitled?

Not raising this to nitpick, I’ve been asked this about disabled students in Residential Schools in our area so I want to make sure I have it right. I suspect it may not matter in most cases (most seem to get the mob component and get care component paid on a pro-rata basis when home at weekends).

Thanks.

GAD - 28 November 2012 04:04 PM

Sorry to resurrect this one so late in the day. ESA reg 18 says that someone will not be treated as receiving education if they are entitled to DLA. If they don’t get paid DLA (because entitled to care component only and been in residential shool for 4 weeks+ so payment suspended) would they still not be classed as entitled?

Not raising this to nitpick, I’ve been asked this about disabled students in Residential Schools in our area so I want to make sure I have it right. I suspect it may not matter in most cases (most seem to get the mob component and get care component paid on a pro-rata basis when home at weekends).

Thanks.

I don’t think so.  There is a fundamental difference between entitlement and payability which has been discussed before across the whole spectrum of social security law.

I don’t think so.  There is a fundamental difference between entitlement and payability which has been discussed before across the whole spectrum of social security law.[/quote]

Hi Nevip. Thanks for the response. Can I just clarify what you mean - do you mean you don’t think they would be classed as entitled or do you mean you don’t think they would not be classed as entitlement (I realise the fault was mine - the way I posed the question was as mangled as my brain currently is. Meant to say ‘wouldn’t they still be classed as entitled’.)?

Hi Gad.  I think that entitlement remains so they should not be classed as receiving education.

Thanks. That’s what I thought you meant but as I seem incapable of understanding what I meant myself I had to have another go!