Discussion: Disability Premium and WTC Disabled Worker Element

26 May 2017, 03:06 pm

WHA
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Money Advice Officer, Warrington Housing Association, Warrington

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I’m working on a case where the Local Authority has removed the disability premium from a HB/CTS claim on the basis that they didn’t believe she should be receiving the disability element of WTC due to a period of time when she worked less than 16 hours per week. The LA made a report to HMRC who have since decided she was not eligible for a short period of time and have raised an overpayment.

However, despite this the disability element remains in payment on the ongoing WTC as her hours have increased again. (The disability element is in payment due to being on ESA for a while prior to starting work).

I’m aware there’s caselaw which states that Tax Credits can’t be ignored as income on claims for other means-tested benefits, even if they are being overpaid at the time. Would this work the other way round to compel the LA to award the disability premium for a period when WTC included a disability element, even if that ended up being an overpayment?

26 May 2017, 04:10 pm #1

Neil
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They need to appeal, whilst it seems reasonable for them to follow the HMRC/WTC decision, HB etc. is an independent benefit and decision making process, so the LA can reach an independent view and subsequent decision. Seems over the top to me but you should challenge it with an appeal.

31 May 2017, 12:22 pm #2

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Thanks for the response.

It was an old decision, but I’ve applied for an any time review on official error grounds referring to the wording of the HB Regs which specify the DP must be awarded if the claimant is ‘in receipt’ of the disability element of WTC, which technically they have been all along, despite an overpayment decision at a later date. I’ve also popped in a cheeky reference to CH/1450/2005. Will have to see what happens…

7 June 2017, 05:17 pm #3

Stainsby
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Was she working more than 16 hrs per week during the period when HMRC accepted that she qualified for WTC because she may be able to argue that the period when she worked less than 16hrs was potentially irrelevant if her hours are averaged over a longer period (See R(FC)1/92 and CTC/2103/2006)

She could try the official error route with WTC if she is out of time to appeal

File Attachments

R(FC)1-92_hours_of_work.doc (File Size: 41KB - Downloads: 2011)
CTC_2103_2006_hours_worked.doc (File Size: 40KB - Downloads: 2107)

8 June 2017, 08:36 am #4

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Thanks for the suggestion. This has already been considered, but averaging the hours out unfortunately does not produce the minimum 16 hours pwk in this case.