External log Q293

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  • #20104

    Has anyone read the answer given to Q293 (example 2)?

    The DWP appear to be saying that when a claimant has a change of income (which naturally affects both the savings credit and AIF) the LA should treat this as 2 separate changes and use Reg 68B for the SC change and Reg 68 for the AIF change.

    This seems absurd to me, as one change in income will (almost) always affect both figures. The regulations require us to modify the AIF by adding in the SC, and then to use this figure for the HB assessment. So how could there be two different effective dates?

    I assumed it was the overall direction of the income change (SC+AIF) that would determine the effect on HB and therefore the effective date under Reg 68B.

    I have queried this with the DWP and they stand by their answer. I’d be grateful for a second opinion.

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