Capital / UC

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  • #286242
    traceyf
    Participant

    Hi

    If you have a UC customer in receipt of CTS and their UC is adjusted due to having tariff income from capital (which will result in a higher payment of CTS) – Do you include the capital as income outside of the UC income or use the lower amount of UC

    #286244
    pbirks
    Participant

    depends what your scheme sayts – but if your scheme says to use the UC figures, then you do just that – the capital is still part of the UC assessmet so it still needs to be included in your assessment.
    If your schemes has a different upper capital limit, it may be that capital over £6k ( which is when the UC tariff income kicks in) will end CTE entitlement anyway.

    #286246
    traceyf
    Participant

    Our scheme reflects the national capital limits of £6000 and over and does say to use the UC figures.

    Can you clarify your second line…… the capital is still part of the UC assessment so it still needs to be included in your assessment.

    Does this mean we include the capital outside of the UC income ?

    #286252
    pbirks
    Participant

    the UC award should state the amount of capital UC are using in the calculation -Although if you know what the tariff income is, you can calculate the amount of capital ar using.
    if theres a tariff income/ savings over £6k, it needs going on your system somewhere – either the capital figure on the capital page or you may have an income code for tariff income for UC cases.

    #286255
    Peter Barker
    Keymaster

    In a conventional English or Welsh CTS scheme this makes no difference, because the reduction in UC is matched by an equal increase in income and the total income for CTS purposes is the same as before.

    So I’m guessing you don’t have a conventional English or Welsh CTS scheme, either because you are in Scotland or because your scheme is unconventional. Where are you?

    #286256
    traceyf
    Participant

    We are in England

    #286258
    Peter Barker
    Keymaster

    Can you narrow it down a bit?

    #286259
    traceyf
    Participant

    South tyneside

    #286272
    Peter Barker
    Keymaster

    Hi Tracey

    I couldn’t find a link to your current scheme, but I’ve had a look at your 2024/25 scheme, unfortunately the rules about income for UC claimants are a bit of a mess. It says you *may* use DWP’s income assessment, and you *may* include UC as income, but you *must* adopt DWP’s capital calculation. Make of that what you will.

    I know the banding is new for 24/25, but if the income rules are carried over from the existing scheme, which is the one that applies in the case you are asking about, your scheme is incoherent I’m afraid.

    In a conventional scheme, the increased tariff income reduces UC entitlement £1 – for – £1 and the combined amount of UC plus DWP’s income assessment is unchanged. The only income change requiring a fresh CTS determination would be a change to the claimant’s earnings.

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