Benefit Cap mechanics

Client is coming to the end of WTC 4 week run-on after stopping work to have a baby. Currently getting (weekly) £246 CTC/WTC, £164 HB and £75.50 CB.

When her WTC run-on ends she will be benefit-capped and QBC says that (assuming she doesn’t claim UC) she will then get £73.10 IS, £170 CTC and £66 HB.

As we know, she can’t now claim IS. Am I right in thinking, therefore, that if she stays on legacy benefits she would actually get £73.10 + £66 HB, or is there some pesky rule that “assumes” she is getting IS and limits her HB accordingly?

Couple of issues here, but firstly, why is she not continuing to get WTC if she’s stopped working to have a baby? Even if she’s not entitled to MA/SMP, she would be entitled for 39 weeks of maternity leave.

Hi James. Apart from the questions above (which I’d echo), benefit cap is purely on money received and you can adjust QBC so that you can ‘show’ that she’s not getting the IS and the HB can increase. This is by clicking the IS/JSA (IB) box and clicking the not entitled thing. Even if WTC is correctly stopping, might she meet the criteria for the benefit cap grace period?

Rebecca Lough - 26 July 2019 12:52 PM

Even if WTC is correctly stopping, might she meet the criteria for the benefit cap grace period?

That was going to be my next question!

Thank you both very much.

I don’t think that the client has worked enough in the recent past to qualify for MA or SMP, or to qualify for the benefit cap grace period.

I fear she may have simply left her job (I have just come across her this week) rather than taken maternity leave, but will explore further the maternity leave angle as a way of her keeping WTC.

Update - Mum appears to be on maternity leave, so problem solved. Thanks again.