Fluctuating “capital” in current accounts

Could someone please point me in the direction of treatment of fluctuating “capital” by HB and CTB depts - we have a client who at one point in the month has total savings of over £16k and two weeks later under £16k.  Thanks.

Income is treated as capital after the period for which the income is paid has lapsed.  If you are paid £100 per week and you have any or all of it left at the end of the week then that amount forms part of your capital.  Local authorities should factor this in to their decision making process when calculating a person’s capital but may need prompting to do so.

Thanks for prompt reply Mick.  Is that in the Guidance Manual?  I can’t see an easy way of calculating that in practice where you have a couple with 3-4 different sums (some weekly, some monthly ie four weekly State Pension, monthly or quarterly occup pension) coming into a joint current account and the total savings including the joint current account dipping under £16 at regular intervals and also going over £16k at regular intervals.  Any ideas?

Take a look at R(IS) 03/93 (aka CIS/0654/1991) - it’s on the UT website.

In bullet point form:

-  money(ies) cannot be both capital and income at the same time.

-  as Mick said, if income in the first instance, money remains income for the period it is in respect of and becomes capital upon the expiry of that period (assuming there is anything left).

For example, if state pension is paid 4 weekly, 2 in advance / 2 in arrears, the arrears element will be capital immediately as the period has expired.  However, the advance element only becomes capital at the end of the whole 4 week period.

The Cmmrs Decision cited has been consistently followed ever since and I’m not aware of any contrary authority.

Thanks everyone.  I’ll look at the case quoted as well and should now be able to calculate it.