new regs out today amend the Housing Benefit (General) Regulations 1987 and the Council Tax Benefit (General) Regulations 1992 to provide that the amount of working tax credit or child tax credit to be taken into account when assessing entitlement to housing benefit or council tax benefit shall be the amount of tax credit awarded less any deduction which is being made in order to recover any overpayment of tax credit

Social Security (Miscellaneous Amendments) Regulations 2004 (SI.No.565/2004) @

http://www.hmso.gov.uk/si/si2004/20040565.htm

I find this rather puzzling:-

1. The SI refers only to recovery of previous year overpayments. As we know, recovery also occurs "in year". What is to happen in this case?

2. The SI makes no mention of hardship top up payments which - so far as my experience goes - are made in addition to the award and separate from it. The implication seems to be that these top ups will not be treated as income for HB & CTB but clearly they should be. What is the actual position?

Any clarification would be much appreciated.

We have a case which specifically relates to point no 1 of the previous thread, i.e. the overpayment is from this financial year. In our case the claimant now has no payments of tax credits due to deductions due to an o/p. HB have said they are 'undecided' on how assess income, the implication being they are not sure of how to deal with the issue as a whole. Meanwhile no HB is being paid, and the client faces eviction. Anyone any ideas of whether the above SI covers this point? And if not then is anyone aware of the legislation that does cover it?

i may be wrong and would be more than happy if i am, but the message i took home from a ferret-run course on tax credits was that adjustments through year do not count either as over or underpayments but purely as adjustments so the rules about treatment of o'ps and arrears do not apply to these. ive put this in more detail in another answer but please please if i've misunderstood someone tell me.

bring back WFTC/DPTC.....I understood those!