Loans as income?

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    I have a claimant who received money as a loan from his father in law. Some of this was paid directly to his landlord on a more or less monthly basis to cover his full rent, and some of it was paid in varying amounts into his current account, but also every month, bar one. (the dates on which the money entered his account changes.)

    The claimant made his claim in Feb 07 and has already lost at tribunal for backdating to August 06. We are therefore taking the loan into account as income from Feb 07 to Aug 07 when we have proof that the payments stopped.

    However the loan was being paid since August 06, so was not entirely only to cover claimants expenses whilst his HB was assessed as he submits. (it wasnt fully assessed and paid until August 07).

    There is no evidence of the loan having been paid back, although it is definitely a loan and not a gift.

    All in all, the amount from the father in law averages out at £400 p/m.

    What would you do? The Regs are very vague about loan income and I’m stuck!



    It is possible for payments of this sort to be seen as income (there is a Commissioner’s Decision – Morrell v Secretary of State for Work and Pensions). Don’t know if this fits this situation, but if it does, and it is possible to see this as income, then it could be disregarded as a voluntary payment of income (as it is a payment from a member of the family).
    Don’t know if this is relevant here, but it could be a solution. 8)

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