Avoiding the lobster pot: in UCFS area can client claim HB (nil income) pending ESA appeal?

This is a hypothetical question as cl has made a claim for UC. However if he had not done so could he have continued to receive HB/CTR on basis of nil income (passported benefit having ended)?

In a full service area, a working age claimant with 0-2 children cannot make a new claim for any of the benefits replaced by UC (IS,ibJSA, irESA, HB, WTC & CTC). Otherwise, they are unaffected.

This means that a claimant on ESA & HB whose ESA stops because of (say) a WCA can continue to receive HB without issue. They aren’t making a new claim for anything.

However if the situation would call for a new claim (e.g. HB stopping due to a high income for a few weeks), it will no longer be possible to do so and your client will either have to claim UC or stick with what they’re getting.

In some cases, it can be sensible for the claimant not to claim UC when disputing a WCA decision and instead wait for the appeal payments to kick in - e.g. where SDP is a factor. There isn’t yet a situation where you can be forced to claim UC, (at least legally speaking).

CTR is a different matter - it’s not part of UC. Your client should still be receiving CTR.

We have been full service for a while and get people to stay on HB on nil/low income while they wait for assessment rate ESA pending appeal if they’ll worse off under UC. By and large, it works without a problem.