Sunbsidy Calculations for CTB (Estimates)

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    Anyone mind sharing how they calculate thier Subsidy estimates for CTB?

    Trying to get a general consensus on this considering the fact that we pay the majority of our expenditure at the start of the financial year.

    Would be interested to see how any subsidy experts calculate this.



    …pick a figure….double it….divide by 3…..add a couple of Million on….

    Its more difficult with CTB because of the ‘paid up front’ issue, but the best place to start is the latest estimate for the current year, which being nearly the end of the year should be a pretty accurate position. I do ours every 4 weeks here.

    Using those figures I’ll apply an increase based on the County & District budgets, then consider trends in our caseload, anticipated additional takeups such as pensioner groups, local activity etc, basically anything that could sway the figures.

    That brings you out with a gross expenditure figure that you can use that hopefully your accountants and the DWP will be happy with, then you just factor in similar changes across the different cells, considering the additional effects of your working environment eg whats the trend in your quality ie will you LA errors increase or decrease etc, on top of the external issues.

    Its all an educated guess really, By the time the mid year estimate comes around you’ve a decent feeling for whats going to happen in the rest of the year for you to adjust your figures.

    Alternatively of course, you could just take the latest estimated position for the current year and apply the maximum increase the DWP will allow which is listed in your paperwork (06/07 CTB = 6.6% for England & 9.2% for Wales) and just iron out any kinks at the mid year estimate.

    Hope this helps


    Superb thanks Mark

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