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Forum Home  →  Discussion  →  Universal credit migration  →  Thread

UC benefit cap - potentially discriminatory against parents receiving SMP?

Tom B (WRAMAS)
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WRAMAS - Bristol City Council

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Total Posts: 454

Joined: 7 January 2013

We have a case at present where a single parent is receiving SMP and is being benefit capped by UC.

Under legacy benefit rules, this claimant would have been continuing to receive WTC and be exempt from the cap.

Under UC, SMP etc. is likely (in many cases) to be below the thresholds set at reg 82 & is also possible for no grace period exemption to apply.

Our client should be exempt via grace period, which we are actively pursuing. However if the grace period exemption were not to apply - it strikes me that the way the cap is applied in UC is directly discriminatory.

Are there any counter arguments to this? & does anyone know if this argument has already been made?

Pete at CAB
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Welfare Benefits Adviser’ for Citizens Advice Cornwall

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Joined: 12 December 2017

In a similar vein I saw a cl yesterday who is in somewhat the same position. She originally made a joint claim with a partner and completed all the ‘previous wages ’ sections in the claim and as far as I can see should have been exempt from the cap for the duration of the grace period.

Unfortunately she separated from her partner shortly after claiming UC and her claim was separated from his.  When we looked at her account there was no sign of the ‘previous wages’ details, not even a journal entry to say that they had been entered.  She was also having the cap applied.

We have asked for an MR on the grounds that the application of the cap was incorrect as the DM had failed to take into account the earnings that had already been disclosed to DWP.

I’m hoping this is a one -off error and easily rectified - has anyone else seen problems with this scenario?