Oddity with Relevant Benefit tick

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  • #37927
    barbara884
    Participant

    I have a claim where JSAIB ends 06/04/11, starts work on 07/04/11. The hold change on start tick is there for JSAIB.

    Upon calculating the claim, CTB is fine, allowing max CTB up to 10/04/11. However, for some reason, the HB change is being taken from 04/04/11.

    There is no change in the rent charge at any point.

    Has anyone else experienced this, and is it correct (I don’t believe it is!)

    Any comments would be appreciated.

    #106748
    Anonymous
    Guest

    I assume it’s a “weekly” rent, in which case it’s correct for this one week of the year only. Saves 2 changes in a week.

    Edited to add: it’s because of uprating

    #106750
    barbara884
    Participant

    Thanks for your comment. However, as it’s a passported benefit, there is no uprating surely? (apologies if this sounds daft, but it is Friday afternoon after all!) :tired: And why would CTB calc from the week after? (again, may be being thick here)

    #106751
    Anonymous
    Guest

    There’s still uprating, even for passported benefits – the legislation specifically refers to that process. The reason CTB wasn’t affected is because 1 April (the uprating date for CTB) was the week before so the 2 changes in 1 week rule doesn’t apply. If the rent was “non-weekly” the HB would have been the same as the CTB because uprating for those claims was also 1 April

    #106752
    barbara884
    Participant

    Thank you. Makes complete sense – just couldn’t see it through my Friday afternoon fog!

    #106753
    hagan_j
    Participant

    Barbara,
    In NI we do not have CTB we have rates, but this is the example that we were given in order to try and help us understand the two changes in one week and relevant benefit. What is happening in your case is the income is changing and the rent is increasing therefore two change in one week. For NI we would have the income changing and the rent and rates increasing 3 changes in one week, however the legislation is the same . Hope the example below helps.

    Mr. Jones is an Local Authority tenant.
    His JSA (IB) ends on the 6th of April (END of a relevant benefit, so this change would usually be effective from the following Monday)

    On the 7th of April he starts work and we have his earnings details (change usually effective the following Monday.
    Remember….. a change actually occurred to his rent and rates charges on the 4th April 2011 (yearly increase) which took effect on the 4th April 2011.

    The HB Regulations state that where 2 or more changes occur in the same benefit week and would usually take effect in different weeks, they shall all take effect on the first day of the benefit week in which they occur. If one of the changes is to the amount of rent or rates payable, the change shall take effect from the actual day the change in the amount of rent or rates payable changed.

    The outcome is:
    • Rent and Rates change occurred at 4th April and is effective from that date
    • JSA (IB) change occurred on the 6th of April 2011 and will take effect from 4th April 2011 also (2 or more changes occurring in the same benefit week rule)
    • The change due to the earnings occurred on the 7th of April 2011 and this will also take effect from the 4th of April 2011 (rule on 2 or more changes applies)

    In this case, the system will actually create an overpayment from the 4th of April 2011 and not from the 11th of April. This would be the correct outcome in accordance with the legislation.

    In this example the JSA (IB) change was the ending of a relevant benefit. The relevant benefit rules do not apply in this example.

    Joan H.

    #106754
    hagan_j
    Participant

    Oh dear Friday afternoon with me too. Copied the wrong example to you but I see that you now have the answer.

    Let’s all just go home!!!!

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