My client is a single parent in receipt of DLA high mob. She was working and getting WTC. She became ill and had to give up work - continued to get WTC for the 6 months, and also claimed IB. Claimed HB and CTB which was awarded taking into account her IB, WTC, CTC and CB. She failed to notify WTC not returning to work, so continued to receive WTC for a further 4 months. WTC discovered this and have since recovered the amount from her CTC - my client does not dispute this. However, she has asked for her HB and CTB to be re-assessed for that 4 month period as the WTC she received has since been repaid. Now listed for Tribunal hearing, but I have not found anything which states that HB/CTB can be re-assessed retrospectively in this situation. Subsequent HB/CTB was calculated using reduced rate of benefit taking account of the repayment. Anyone have any ideas?

Normally, income is attributable to the period it is in respect of, so any retrospective changes get taken into account (subject to the one month rule if the change is advantageous).

The difficulty is that there is a specific deeming provision specific to Tax Credits - HBR 32 - that specifies the amount of income is the amount that is PAID; not the amount of ENTITLEMENT.

So, unless someone is able to unearth some ingenious legal argument / precedent, my view (based on the info given) is that the LA is correct.

On the other hand, you may just strike lucky with a Tribunal Chair who finds for your client and the LA chooses not to go to Cmmrs....

'Subsequent HB/CTB was calculated using reduced rate of benefit taking account of the repayment'

Because the Local Authority take the NET amount of Tax Credits into acccount (ie, taking into account any repayment of an overpayment), this is why they cannot also retrospectively re-assess claims to take into account the amount the claimant was 'entitled to' (and not paid). To do so would mean the overpayment was effectively taken into account twice.

Your client is perhaps lucky in that she is still entitled to Tax Credits and as such can re-pay the overpayment from her entitlement (and have the net figure taken into account when calculating her HB/CTB). The people who really lose out are those that are no longer entitled to Tax Credits, and have to repay the overpayment via an invoice or similar. In these cases the Local Authority cannot take the repayment of the overpayment into account (apart from perhaps considering a DHP).

As Kevin said though, you may get lucky at tribunal...

Have a look at CIS/647/2007.