capital over 16,000.00 due to lump sum HB

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  • #38052
    irenejoy
    Participant

    Hi

    Can anyone pleae advise if we have to pay a claimant a lump sum payment due to a relevant benefit – DLACH and we were taking non dep deduction – and that payment then puts the claimants capital over 16,000.00 would there be any disregard?

    I have thought not but just want to make doubly sure.

    Claimant will now also have too much capital to qualify for ESA(ir).

    #107151
    Kevin D
    Participant

    This assumes the “working age” regs apply.

    The monies take two forms:

    1) As income (albeit disregarded) over the period it in respect of.
    2) Capital, but only from the date of receipt; or, from the first day after the period for which it counts as income (whichever it the later).

    The capital is disregarded for at least 52 weeks – para 9 of Sch 6. If the arrears of DLA exceed £5,000, sub-para 2 of para 9 may need to be considered.

    As to whether the non-dep deduction can be extinguished retrospectively, I’m no longer sure due to the nonsense that the change of circs legislation has become. Some will say “yes”, others may well disagree. I conveniently (and admittedly unhelpfully) sit on the fence….

    #107152
    irenejoy
    Participant

    thanks Kevin
    but our problem is claimant was in receipt of DLACH but was Income support and although back in the day when she sent in claim form she advised us that DLACH was being paid we missed this fact.
    On our annual checks/reviews as the claimant was on IS we merely checked CIS and the DLACH was not shown there so we didn’t pick it up. On a change of circumstance our officer noticed that claimant had oxygen bottle etc and asked about DLAC and it all came to light.

    We have mae decision that we erred and claimant would not have reasonable known that there should be no non dep deduction and therefore will award some HB.

    how would you see this capital?

    thanks you again for any assitance and advice

    #107154
    Anonymous
    Guest

    Worst that can happen is the arrears of HB are disregarded under para 9(1)(b) of Schedule 6 for 52 weeks.

    If the amount is more than £5000 they are disregarded indefinitely as long as the claimant’s HB award continues. Same applies in ESA(ir) as well so the claimant won’t lose that entitlement either.

    It’s unalloyed good news for the claimant here!

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