Grandmother claiming child benefit

I am not really sure if this is more an ” other benefits” issues than a Housing Benefit one. We have a situation where a mother has had to move for work. She works full-time. The children live with her (no claims for HB etc) but in practice during the week live with their grandmother who is close to the school they attend.  The grandmother now penalised by the bedroom tax.  I can see no reason why the grandmother should not claim the Child Benefit, and thus being responsible for the children, leaving the Child Tax Credit with the mother. Can anyone else?  Ruth

Sorry, but, just changing the CHB to grandma, in itself, does not make grandma responsible for the children AND does not make Grandma’s home the children’s main home (SSCB and HB regs). I think, from the details you have posted, that’s the LAs stance.

BUT

Are you saying the Mother, and the kids, were previously living with Grandma? (As I note you said she is “now” under-occupied) If that’s the case, it can be inferred that Mother is working away from home, and Grandma’s home is the main home. (The downside of that would be non-dependant deductions.

Could you post a bit more details, as I may be way off base here…....

I suspect the LA will use CB entitlement to determine who has main responsibility, although it’s not definitive. It’s unusual to claim CB and not CTC, so perhaps someone can address any issues that might arise from this.

Check out CPAG p213 - for HB you’re responsible for a child if the child normally lives in your household - spends more time with you than anyone else. Where there is doubt or the child spends equal time with two people, CB is the tie-breaker.

There are also rules on being a “substantial minority carer”, CPAG 212.

So, CB doesn’t have to change to get the kids moved to grandma’s HB claim.

Failing that, DHP.

The children and their mother did not live with her before the mother’s move.  They lived nearby.  The mother moved partly because of personal reasons (the father committed suicide in that house) and partly to obtain work. In this case it would be reasonable to say that the children live more with their grandmother (as they are with her five days a week during term time) so she could well be considered responsible for them.  I know she shouldn’t have to claim Child Benefit for the children to be considered part of her household but it is usually hard to get the local authority to accept other evidence.  What I am wondering is if she could claim Child Benefit whilst leaving the Child tax credit in the mother’s name, rather than having to go through the hassle of changing both. All comments welcome.  Thanks Ruth

CTC entitlement requires ‘responsibility for a child’ which in turn requires that the child is ‘normally residing’ with the claimant. So it sounds as if the grandmother ought to be the one claiming CTC anway. I’m not sure it is hugely more onerous to change both and;

1. The award of CTC will add weight to the CB for the purposes of grandmother’s HB claim/bedroom tax.

2. It will avoid any future potential problems if HMRC investigate the mother’s CTC claim and decide she has been overpaid (because the children aren’t normally residing with her).