New claim for UC, WTC 4-week run on - how treated? 

Claimant ends works, claims UC, is eligible for WTC 4-week run-on. How is this treated for UC?

CPAG doesn’t list WTC as income to be taken into account/ignored (p.117), and it doesn’t seem to fit with the definition of ‘specified miscellaneous income’. Reg 66 of UC Regs doesn’t list WTC under benefits. It’s not in the chapter of the deposited papers ‘Other benefits’. My guess would be that the WTC run on is taken into account in full as it will be paid in the first AP and deducted from UC after the taper is applied.

There is also this in Schedule 10 , Capital to be disregarded, could WTC come under 18 (b) or (c)?

18.—(1) A payment received within the past 12 months by way of arrears of, or compensation for late payment of—
(a)universal credit;
(b)a benefit abolished by section 33 of the Act; or
(c)a social security benefit which is not included as unearned income under regulation 66(1)(a) or (b).
(2) “Social security benefit” means a benefit under any enactment relating to social security in any part of the United Kingdom.

Has the claimant actually been told by HMRC/DWP that she can get 4 week run on despite having claimed UC?

Reg 8 UC (TP) Regs 2014 says that TC entitlement ends on the day before the claimant is entitled to UC and that “were an award terminated by virtue of this regulation, any legislative provision under which the award terminates on a later date does not apply”. So, as I understand it, the Reg terminating TC entitlement would supersede the legislation entitling the claimant to the 4 week run on.

If the claimant is not entitled to TC run on, then the claimant may have an overpayment for the part tax year. The overpayment can be recovered as a UC overpayment (Reg 28 TCA 2002).

Of course if the claimant is entitled to the TC run on, then it should be ignored by UC as its not in the list of unearned income which can be taken into account. CPAG expressly says that “All other benefits are ignored” - the list of benefits that are disgarded are just examples.

She has not & I think you’re probably right that entitlement to TC will simply end the day before UC starts - a colleague has suggested the same.

There are some notes here about the finalisation of TC awards on migration to UC - https://revenuebenefits.org.uk/universal-credit/guidance/stopping-tax-credits/finalising-tax-credit-claims
- it makes for complicated reading!