DHP and the better Buy Second Adult Rebate

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  • #19630
    AndrewDonald
    Participant

    Hi,

    I have a DHP claimant who receives a 2AR because it awards more than standard CTB. However this means we cant pay a DHP…….unless someone can tell me how to get around this.

    Any ideas?

    #419
    shadeycat
    Participant

    have you tried setting the claim up and adding the DHP prior to doing the calc? That way the system may not award the better-buy calc and just give main CTB.

    Alternativly calc the claim and then add the DHP. Again the system may look and see that the CL is better off being on main CTB rather than getting a 2AR.

    #420
    Anonymous
    Guest

    I don’t think this is a computer problem that nheeds to be worked around; I think the problem is that Reg 3(e) of the DFA Regs says you cannot get a DHP in these circumstances.

    I suppose the reasoning is that your two households for comparison are:

    Household 1 – single householder living alone whose income is too high for CTB. Pays 75%.
    Household 2 – occupier with a non-dep whose income is too high for main CTB, but 2AR means liability can still be reduced to 75%.

    2AR in effect makes the non-dep invisible … so for all practical purposes both households are in the same boat. Why should household 2 be able to get a DHP when household 1 cannot? It is unfair that one of them can then get a further CT reduction through DHP while the other cannot … so the DFA Regs say that neither of them can.

    … unless there is some residual main CTB that is less than 2AR, in which case you can top-up the main CTB with a DHP and so you need to follow the work-around suggested by the rpevious poster

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