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SRP paid 4-weekly, deducted from UC as monthly sum
My clients are MAC, husband receives SRP and wife CA. They claimed UC. His pension is paid 4-weekly at £718.40 and after this is deducted along with the CA he would be left with a few pounds a month UC for most months of the year. However, UC is deducting the monthly amount of the SRP, £778.27, which creates a nil monthly award.
Is UC correct to do this and if so please could someone point me to the regulations so that I can explain to my clients?
Thanks.
It is correct, the regs are here: https://www.legislation.gov.uk/uksi/2013/376/regulation/73.
Sooner or later there will come a UC AP (or might already have been one) in which two SRP payments are received but the calendar monthly income figure remains constant, so it does all balance out in the long term. When that month falls depends on the date of the UC AP and the SRP payment cycle - it could be anywhere from the first AP to the 12th.
But would it balance out? By calculating it monthly the claimant is never entitled to UC. If it were to be calculated on the basis of how it’s actually received, he would receive a small amount of UC 11 months of the year, and none at all in the month where there are two payments of the pension, so he would be better off. But, it’s a bit of a theoretical question if the regulations are clear.
Sorry, didn’t read the bit about not being entitled. In that case yes, loses out by averaging. But Regs are clear
Of course, if the same sum had been earnings then it would be treated differently, as in the OP. It is, again, of course, blindingly obvious why the situation is different.