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Reduced Earnings Allowance - Possible Change of Circumstances?

Clare M
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Senior welfare benefits adviser - Shelter NE

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Total Posts: 5

Joined: 7 October 2010

I am very rusty on this subject now, but hope that someone can provide me with some guidance.

I am working with a client who has been in receipt of REA for a significant period of years.  He was born in 1944 and has been working part time (14 hours per week). He remains employed, however recently was advised that due to a short term cash flow problem he wouldn’t receive any wages for approx. 4 weeks.  He continued to work in the same capacity.

He was concerned that not receiving remuneration would constitute a change of circumstances, hence contacted the DWP.  A letter then followed to say that as he is no longer employed he will now only receive Retirement Allowance, which came as a bit of a shock.

However my issue is that he still remains employed in the same capacity, he has now received his wages and continues to do so, and indeed has been offered a further 12 month contract to work, which he has accepted.

There does not appear to have been any break in employment status from my client’s perspective, however due to cash flow problems REA ceased.

Does anyone have any hints or tips on how to get around this one?  I am conscious that if the entitlement to REA ceased for one day then you would transfer to Retirement Allowance, however from what I can see entitlement appears to have been continuous.

Thanks

ClairemHodgson
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Solicitor, SC Law, Harrow

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Total Posts: 1221

Joined: 13 April 2016

oh dear.  his mistake was telling DWP that there was a change of circs, when there wasn’t.

i would suggest appeal; no doubt the employer will confirm that he continued working throughout the relevant period?

Clare M
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Senior welfare benefits adviser - Shelter NE

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Total Posts: 5

Joined: 7 October 2010

Thanks Claire, appeal lodged so fingers crossed.