Backdated IIDB award for CTB - is it capital or income

Hi, many thanks to those that put me on the right track over my client’s ‘presumed’ deprivation matter.

The LA have now back tracked and are now only interested in the backdated element.

To update, we made a claim for change of condition in June 11, in December 11 he was awarded IIDB at 40% for 2 years.

DWP backdated award March 11.

LA now want their slice!! Received to day from them revised CT accounts for 10/11 & 11/12. They are treating the award made in Dec 11 as income received from March 11 onwards and as such are revising every week since March 11.

Now as far as I was aware this backdated payment covering the 9 months should be treated as capital and not income, or at worst income in the week it was received.
Am I right? And if so, what reg would cover it?

They have also started on a failed PC claim - I’ll post that under the correct heading.

Many thanks - LA’s seem to be gunning for every last drop at the moment!

On this specific issue, based on the info so far, the LA is correct.  It’s paras 6 and 7 of HB Reg 79.  In short, monies that would have been income had they been timeously paid count as income for the period they are in respect of, irrespective of when the payment is actually made.  This isn’t an area of any real contention - the principle has been in place for years and, in the context of earnings, reaffirmed in the recent Minter / Potter cases.

Also, although monies cannot be both capital and income for the same period, any amount of income arrears that are still held the end of the “income period” become capital - that principle is also long since settled.  So, if the monies are attributable as income for period A-B, with C being the first date after A-B, any monies left become capital as at date C.

Thankyou.

That is very clear and understandable.