we have an authority that we believe are failing to apply an earnings disregard

the case is of a single man over 25 who was in full time work and not claiming HB. he became ill and went onto SSP and made a claim for HB. he's still receiveing working tax credit including a 30 hour disregard, as he's been off work for less than 28 weeks.

HB arent applying the £5 single person earned income disregard. most authorities we deal with do apply it, and we think that is the correct way. our electronic benefit calculator also applied the disregard

should the disregard be applied against SSP? and if so can someone squote the reg that we can put to HB to challenge them on this.

many thanks

Disregard should apply.

HB Regulations 2006 (SI 2006/213)

Reg 35 subpara (i) - SSP/SMP/SPP/SAP are earnings for HB and so attract the earnings disregard.

See

http://www.dwp.gov.uk/advisers/docs/lawvols/bluevol/pdf/a8_2501.pdf

(its on the 49th page)

I wonder if this is a system design failure which affects many others? It may be worth asking them to review all their SSP cases and also finding out what the cause is. If it's to do with software design, presumably other LAs could be making the same mistake?

Or it may just be a one-off operator or claimant error.

Not a design failure as such - more a case of failing to design....

The most common issue with SSP and HB/CTB computer systems failing to pick up "deemed" remunerative work is centred on the field for the number of hours worked.

The tendency is for the number of hours to be input as just "1" ('cos the systems won't accept "0"). HB/CTB systems are simply not designed to allow an override for the deeming provisions relating to remunerative work.

In some cases, putting in 16 (or 30) hours will give the correct effect, but there is something niggling at the back of my mind that there is a scenario where the wrong hours can result in an overpayment - hence most LA's inputting the lowest number of hours. Off the top of my head, I can't remember the scenario (it's too early)!

But, anyway, the "problem" is usually the "hours" field.

Hope this helps.