Reply To: UC Manual Payments

#163264
guy
Participant

Here is my opinion, but it is based on our CTS scheme and an interpretation of HB guidance and regulations:

UC Advance Payments

A new section called Manual Payment (see below) now gives you information about UC Advance payments, which the UC claimant can request, often due to the in-built delay in the initial payment. This payment is income, at the time it was paid, prior to the actual UC award. But by the time, you have received the Data Hub form, you have the actual UC monthly payment amount too. The advance is repayable, which is why there is also a deduction for first month advance being made. In accordance with our CTS scheme we use the net UC monthly amount plus the first month advance as the income and any other adjustments or household earnings, if applicable. So, ignore  the UC advance manual payment in the calculation. The only time where we would use the UC advance as income, is if we were to make an estimate UC claimant’s award for CTS under our CTS scheme rules.

In HB for Supported Exempt Accommodation and Specified Accommodation claims, all UC income is disregarded because the claimant is entitled to maximum HB as confirmed in A8/2013 under HB Regs Schedule 5 para 7(d); and Schedule 6 para 9(1) SI 2006/214. Still process the Data Hub form for these rarer cases.   

UC arrears

UC arrears is a one off lump sum of UC. This may be paid for either delays in payment, subsequent one month backdating, of backdated underpayments for reassessments for earlier assessment periods. They are to be treated as capital, not income for CTS and taken into account in full under our CTS scheme. There will be and associated reassessment of UC, details of which will be on the Data Hub form. Reassess the CTS award from the effective date of the change. If this results in them being worse off, excess CTS is recoverable from their Council tax account, but you have the discretion not to recover it within our scheme.    

In HB for Supported Exempt Accommodation and Specified Accommodation claims, all UC capital is disregarded because the claimant is entitled to maximum HB as confirmed in A8/2013 under HB Regs Schedule 6 para 21(2) SI 2006/214. Still process the Data Hub forms for these rarer cases.