Silly Question for a Friday!!

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  • #21990

    Morning – not sure if possible but can you apply underlying entitlement AND reduce an overpayment by using the diminishing capital rule??? this is the scenario – notified by DWP on FPA4 that IS withdrawn back to Dec 02 as claimant in excess of £8,000.00 from Dec 02 to Feb 03 when reaches £17,000.00 till Feb 04 when cap drops to £15,000.00. IS withrawn purely due to misrepresentation of capital. Sooo resultant o/p can it be reduced by both U/E and diminishing capital 😆 😆


    Not a silly question at all. My instinctive view (without looking anything up) is that surely you must be able to do this on the principle that any OP should be net of any benefit properly due for the period – subject to you having the info necessary to calculate what is properly due.

    Andy Thurman

    My immediate thoughts on this are that you can use ‘normal’ UE prior to cpaital reaching £17k and then diminishing capital at this point 8)

    If clmt’s IS ended solely due to capital, their UE between Dec 02 and Feb 03 will be ‘full’ HB.
    From Feb 03, there is a genuine period of nil ent but as this is due to cap over £16k, diminshing capital rules apply. Once the diminshed/calculated capital figure is under £16k, the UE will again be ‘full’ HB.

    This would be messier if other issues affected IS as well, but from your post this is entirely capital &, as the tariff income is not going to exceed app amounts, the only bit of the o/p not cleared will be from Feb 03 until the diminished capital rules reduce to under £16k.


    Thanks for your help!! 😮

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