I have queried why a LA have not left a min of 50p in payment from a claimants HB entitlement where they are recovering an OP

The current HB entitlement is £6.72 pwk and they are not paying anything as they have advised me the following:

Their interpretation of reg 102(2) is that they are able to recover an OP in full subject to an overall maximum deduction but they are not permitted to recover an OP which would leave a balance of benefit to be paid at 50p pwk or less

They then go on to say that as the standard rate of recovery is £8.40pwk they will continue to recover in full

This to me sounds like a contradiction to their 1st comments

Has anyone dealt with a situation such as this or has any advice on how to challenge them further on this point?

Thanks

Rowena.tomlinson@nbh.co.uk

50p should always be paid, regardless of whether the entitlement is less than the deduction rate.

So, you are right and this seems straightforward enough in Reg 102.

However, I have to confess that we have just converted to a new major benefits system and I we've discovered that there is no current provision within the system to pay the min 50p!!!

So it looks like we used to do it correctly, but now won't be until they have enhanced it....

thanks Paul with that confirmation that I was interpreting the regs correctly I will challenge it with the benefits manager

I forgot to add that the whole point of the 50p was to stop your type of case happening.

If memory serves me correct, the 50p was put in place to make sure the claimant always had HB entitlement, so they were eligible for grants / benefits that were awarded if HB was in payment.

The 50p therefore ensured that they always had evidence of this.

that is what I was taught as well

Thanks