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Forum Home  →  Discussion  →  Housing costs  →  Thread

minimum earnings threshold, left job 3 months ago and cts

GHE
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HB, Bolton Council

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Joined: 4 January 2011

Hello,
We have a customer who is living in temporary accomodation. He stopped work voluntarily in Feb 2014 becasue’he wasn’t getting any work’. He’s been awarded JSA (after 13 weeks) and made a claim for HB in April 2014. The wage slips he provided are from when he started work in April 2013 and another random period when he was on ssp. His support workers are arguing becasue he had a contract, it was g & e.

I’ve refused Hb because
He does not meet the minimum earnings threshold. He hasn’t been earning at least this amount for a period of 3 months immediately before his claim for HB. He voluntarily left his job on February 2014

As his work is not being treated as genuine and effective, he hasn’t established himself as a worker and so cannot be treated as a former worker who is now a primary carer of a child in education
He cannot retain his worker status as he has not established himself as a worker and anyway, he has left his job voluntarily which doesn’t allow you to retain any worker status

Is this the right decision, or have i got the wrong end of the stick?

Also, A3/2014 refers to Hb only, we’ve made no amendments to our local cts rules, so can i apply the minimum earnings threshold to CTS as well.

thanks

[ Edited: 1 Jul 2014 at 10:47 am by GHE ]
nevip
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Welfare rights adviser - Sefton Council, Liverpool

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It’s unlawful to consider a person as not having a right to reside solely on the ground that the claimant doesn’t meet the earnings threshold.  Each case must be considered on its own merits as to whether the work is genuine and effective rather than marginal and ancillary.  And, just because a person has left his job does not mean that he is not in involuntarily unemployed for the purpose of the EC Directive.  See attachment.  A contract of employment in itself is not determinative of the issue.  Furthermore, the “involuntarily unemployed” bit might not be necessary as he might be able to found a right to reside following Teixeira (a right on the back of the child’s right to education).

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HB Anorak
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Benefits consultant/trainer - hbanorak.co.uk, East London

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Circular A3/2014 has two Annexes A and B that summarise some of the case law down the years that has dealt with effective and genuine work.  As nevip says, DWP’s guidance is only saying that you don’t have to bother with that level of scrutiny for people who satisfy the earnings threshold - still got to consider all the others on their merits.

If you were to come to the conclusion that his work was not effective and genuine, which you might still do after further consideration, that would make his current status job seeker at best.  Here it is worth noting that the prescribed content of your CTR scheme (the bit that you have to adopt by law) is running a year behind HB in terms of the treatment of EEA job seekers.  There was a loophole in Year 1 that allowed them to get CTR if they were habitually resident even if they were not on JSA(ib).  That has been closed for Year 2, but not in time to exclude job seekers entirely the same way HB now does: so an EEA job seeker on JSA(ib) remains entitled to CTR for the current year.

Ros
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