It depends whether the the client reduced his hours below 16 before the first day of entitlement to HB - in reality, I think it would mean that a claim was made on 30th June or later. If the claim is after the last day of the period when he was working 16 hours or more, the earnings from that period are disregarded (paragraph 1(c) to Schedule 4 HB Regs). I don't think reg 29 is worded very comfortably in this case, as it usually looks at earnings before the benefit week in which the claim is made, unless a person hasn't been in his employment for the past periods normally required to produce an average. Arguably, in such circumstances, the income from earnings is nil, until he receives the new lower payment. If the claim pre-dates 29/6/09, an average of earlier earnings will be used. If that produces a "nil" result, re-claim after 29/6/09.
(Brian)
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