Retrospective change following UC Migration Run-On

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  • #287257
    Christine
    Participant

    Hi all,

    I have trawled through the DWP UC migration guidance and FAQ’s but can’t see to find what I am looking for, so any advice would be greatly received.

    We have a claim that was in payment based on EI of £580 a month and Tax Credits. We received a UC migration notice(UC effective date 25/05/2024) and the run awarded for the period 25/05/2024 – 07/06/2024 at the current rate of HB award.

    We have now received a VEP alert (05/06/2024) which indicates the claimant ceased one employment on the 03/05/2024 and commenced new employment on the 07/05/2024 with earnings at over £1,000 a month. Based on the increased earnings the claimant will still be entitled to HB, just about £30 a week less for the period 13/05/2024 – 07/06/2024.

    As the claimant should have notified us of the change to their circumstances, are we right to action this change of circumstances and create an overpayment? or are we to ignore it, as the income information we had available at the time of the run-on award was right, as VEP did not reflect the change at that time.

    Thanks,

    Christine

    #287258
    helevans
    Participant

    Hello – as I understand it we’re still to action those changes as the payment of HB prior to and including the migration period is still subject to the usual subsidy qualification checks. As its an unreported change in their circumstances and disadvantageous to the claimant then you’d need to amend accordingly.

    #287259
    Christine
    Participant

    Thank you 🙂

    #287262
    garethbannister
    Participant

    Hi

    Yes you are right to action the change prior to the UC claim. You are awarding max HB (passported by UC) for the run on period 25/05/2024 – 07/06/2024 aren’t you?

    #287263
    Christine
    Participant

    Thanks Gareth.

    It’s our understanding the when it is managed migration, the run-on is paid at the current HB rate, not max HB?

    #287264
    Peter Barker
    Keymaster

    The HB rate in an MM case is the same as it was on the day before the UC claim. See Reg 8A(c) of the UC Transitional Provisions Regs 2014.

    Apart from Subsidy, any revision or retrospective supersession of the HB award affects the legacy amount used to work out transitional protection so that’s another reason for doing it

    #287265
    Christine
    Participant

    Thanks Peter.

    #287266
    garethbannister
    Participant

    Can I ask what that understanding is based on?

    #287267
    garethbannister
    Participant

    oh yeah. we’ve been doing that 8-/

    #287268
    rob-boxall
    Participant

    We have been getting Managed Migration stop notices, paying run on based on HB at time of migration only to then get ATLAS changes due to Tax Credits stopping during run on period. If actioned these inflate HB and TP and impact on CTS calculations until UC is calculated. All a bit of a mess. Anyone else finding this?

    #287314
    Christine
    Participant

    Update – I posted my question on Glass Cubes as well as on here and I have been advised the following by the DWP:

    On the circumstance described on your post, you will have to ignore it, as the income information you had available at the time of the run-on award was right, as VEP did not reflect the change at that time of the run on award.

    #287338
    Christine
    Participant

    Update, Update – I’ve just received a further email from the DWP back-tracking on their previous advice and have now said….

    So in line with the VEP guidance, since the task was viewed (5 June) which is following the receipt of a UC Stop Notice(assume 25/5 or 26/5) and the change is applicable to a date (3 May) which is before the Stop Notice was issued, then the task should be actioned as normal and the correct outcome should be recorded.

    You are right in saying the claimant should have notified you of the change to their circumstances, you are right to action the change of circumstances and create an overpayment.

    Anyone else feeling dizzy!?

    • This reply was modified 1 month, 1 week ago by Christine.
    #287343
    Peter Barker
    Keymaster

    It’s not really an MM question, it’s a more general point about retrospective amendment of earnings. A lot of fluctuations can be massaged away in an updated average without going back, but this seems like a pretty clear cut change on a date you can identify and it would be difficult to avoid picking this up retrospectively, MM or no MM. But, as this is an MM case, it does mean that all the numbers on “migration day” need to be revisited for the purpose of both the HB run on and transitional protection.

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