This is somewhat oversimplified, but (for HB & CTB) there are two "types" of decision that are available to a LA:
1) Defective claim: In most cases, this is where the instructions on the form have not been followed (incomplete answers and/or failure to provide evidence as requested on the claim form). A clmt can be asked to rectify any "defect" in this context.
OR
2) Claim not defective in terms of "1" above, but "incomplete" in the sene that the LA has requested info / evidence NOT originally requested on the claim form and the clmt has failed to respond appropriately.
In "1", and contrary to what is thought by some, it is still lawful for a LA to make a decision that the claim is defective; end of.
However, once a LA has sought info / evidence in the circumstances set out in "2", it is no longer possible for a "defective claim" decision. The only alternative available to a LA is a so-called "outcome" decision (i.e. based on income / cap / household etc), whether or not inferences are drawn in reaching that decision.
Hope the above helps.
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