HB/CTB will be assessed based on the income / cap covering the actual period those circumstances apply to (assuming this is not a 60+ claim / self-employed etc). It is also assumed that "Extended Payments" do not apply either.
For example, if your client makes a claim on the basis that s/he is receiving SSP, the Council will (normally) calculate the claim on that basis (taking into account all other income / cap etc).
However, if your client's income / circs changes, that change takes effect (normally) from the Monday after the first day of the period to which that change takes effect. There is no period of "grace". Your client is under a duty to inform the LA of changes in his/her circumstances (including the circs of partner / deps / non-deps etc), irrespective of whether or not s/he has separately informed the DWP / Inland Rev etc.
Hope this helps.
Regards
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