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Disability Element following DLA ending

 

unhindered by talent
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Welfare Rights Team, Aberdeenshire Council

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The one benefit I have very little experience of is WTC and the history of this pre-dates my involvement so I would appreciate your advice.

Client’s DLA ended last May and so did disability element of WTC. He argued that, at the time he first claimed WTC, he had been in receipt of DLA AND Income Support (on the grounds of disability) & HB with disability premium so even if DLA ended, they could have awarded it because of IS and HB disability premiums. Disability element was reinstated and they told him it was for a year. Does this sound feasible?

This year, on renewal, he ticked the box to say nothing had changed and disability element is included again even though they know his DLA ended a year ago. Could he be getting it under condition G on the basis of WTC disability element or HB disability premium being in payment to date, or should he inform them they’ve made an error?

If he is overpaid WTC, will housing benefit make up the underpayment (his HB is reduced because of disability element)?

Many thanks

      [ Edited: 10 Aug 2018 at 07:11 pm by unhindered by talent ]
Jon (CHDCA)
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Welfare Benefits, Craven CAB, N Yorks

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If he is overpaid WTC, will housing benefit make up the underpayment (his HB is reduced because of disability element)?


No, the WTC was actually received at the time, there is no HB provision that pretends otherwise in the event of an HMRC overpayment decision. If anything, there may be a HB overpayment - if the disability element of WTC was the only passport to the disability element of HB, then I think the council should revise to remove that premium.

Going forward, if a tax credit overpayment is recovered in the following year, then the net tax credits will be used as income by HB, so there can be an HB increase in that sense.

BUT - I don’t see why any of this should come up, if as you say he qualified for the disability element at the start of the tax credit claim by condition G, and the tax credits have been continuous.

     
unhindered by talent
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Many thanks for that. I guess i’m uncertain as to whether he is actually entitled under Condition G to an ongoing award of disability element. He was on IS, DLA and HB when he first applied for WTC in 2014 but he tells me that when he told them this, they asked for proof of IS which he didn’t have so i’m unclear about the basis of entitlement.

     
Mark Willis
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Hi UBT

The rules do seem to allow for the disability element to continue in this scenario, and it is confirmed in HMRC guidance. See http://cpag-mail.org.uk/5MI-4OICZ-CDJNY4X9C/cr.aspx#Q-A

Mark

     
unhindered by talent
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Many thanks. That’s helpful. I got hold of the decision letter on his MR of last year’s decision. The advisor had quoted Reg 9 (3) WTC (EMR) regs concerning HB disability premium in last 182 days and HMRC rsaid that they accept proof of HB and revised it under 9(2)WTC (EMR) regs. I think they mean 9 (3) as 9 (2) doesn’t concern itself with HB.

      [ Edited: 13 Aug 2018 at 03:32 pm by unhindered by talent ]