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Breaking claim to get more LHA
Is there anything to stop a claimant from withdrawing their claim in order to get a break in entitlement followed by a new claim so that the new claim is assessed based on a different LHA rate? The idea is to try to avoid having to wait until the anniversery date in order to benefit from an increased LHA rate. Would there need to be a period of seven days of no entitlement for the new claim to be assessed at the new LHA rate? I’m pretty sure there is a problem with this but since I can’t put my finger on it was hoping someone would point out what I’ve missed.
It’s one of those areas where opinion is split. There isn’t any question that a claimant can prospectively withdraw a claim/award and then make a new claim. But, there is split opinion on whether a “gap” of a week is needed. Anecdotally, I understand there are cases winding their way to the UT. My personal view is that…I don’t have a positive view. I know, that’s not terribly helpful! But, there seem to be strong arguments on both sides and I for one will be happy for the UT to just determine what the law provides - whichever way it goes.
As an aside, there is a further practical matter that will need to be considered - the impending reduction(s) in LHA. Switching may appear to be a good idea now, but may not look so good one year down the line for long term claimants.