Has anyone come across a local authority trying to take into account notional income when a HB/CTB claimant has failed to apply for WTC?

I have checked and it doesn't seem to be allowed under Reg 42(2) but I have client would has been told it could happen if she and her husband fail to make a claim (they have had a torrid time with TC overpayments and would rather have the HB, thanks very much ...) so I was wondering if it has been a problem anywhere. I've never come across it in these parts.

Sue

It should not happen. 42(2) is clear and all the guidance on TC's issued to LA's is that we should not try to second-guess someone's TC entitlement.