I have taken this question to DWP with a couple of cases. Their answer is:
New annual award minus amount already paid divided by number of days from date on award notice to the end date of the award. Affects HB/CTB from Monday after the date on the award notice.
I think this means the same thing as what Peter is suggesting although I don’t see where Peter’s overpayment comes from.
This is also a method I have some serious problems with – not least because the ongoing HB/CTB can be adversly affected by the date on which the IR process the change to the Tax Credit award.
This sort of scenario is even more interesting when the IR increase the Tax Credit award because it raises all sorts of questions about arrears.
Are there no takers for my earlier tax credit poser?
