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LMI qualifying period

 

Elliot Kent
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I have a case where a gentleman claimed UC at the end of his job last August. He enquired about a Loan for Mortgage Interest (LMI) and was told that they would look at it after nine months had passed.

In February, and for reasons which have not been explained, he received a payment from his ex-employer of £20.65 which the DWP have taken as earned income.

The DWP have now (belatedly) considered whether he can have LMI and they have decided that he can’t. They say that in order to qualify, he must have a nine-month period in which he receives no earned income at all. They have said that the payment of earned income effectively “resets” the qualifying period and they will look at it again 9 months after the AP in which that payment was received.

Is this correct?

      [ Edited: 13 Sep 2018 at 05:49 pm by Elliot Kent ]
stevemac
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Hi Elliot -  my understanding is that a client only has to have a UC entitlement for the 9 months QP and am unaware of any specific reg that states this QP ends and will re-start if any work done during these 9 months - methinks a challenge to UC is in order asking they detail the reg they rely on !


     
Elliot Kent
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Thanks Steve - that was what I was thinking but I have the DWP, the client’s MP and e.g. the Money Advice Service’s website telling me that I’m wrong.

As I see it, reg 2 sets the QP as nine APs from the start of the claim.

Reg 8 says that the loan starts from the day after the QP.

Regs 9 and 3(4) say that the loan either won’t be paid or ceases to be paid if the claimant has any earned income. But I read that as “forward looking”.

There’s nothing in the regs on the subject of earned income during the QP - I suspect that they could have written the regs in terms that the QP is 9 APs during which a loan would have been payable. But they didn’t as far as I can see.

Interested if anyone has any other thoughts.

     
MickD
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Looks like they are trying to read UC Regs Sch 5 reg 5 into the LMI regulations and it’s just not there.

     
Gareth Morgan
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Was he actually entitled to Universal Credit without housing costs, or is it only the loan?

     
Elliot Kent
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Gareth Morgan - 14 September 2018 04:39 PM

Was he actually entitled to Universal Credit without housing costs, or is it only the loan?

Yes, UC is his only income.

     
Elliot Kent
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MickD - 14 September 2018 01:52 PM

Looks like they are trying to read UC Regs Sch 5 reg 5 into the LMI regulations and it’s just not there.

Thanks Mick - I can definitely see that. I think that they certainly could have adopted that definition of a QP under the LMI Regs… but they didn’t.

      [ Edited: 15 Sep 2018 at 10:17 am by Elliot Kent ]