This must have come up before but I can't find it and tbh I don't know if I'm clutching at straws anyway.

HB/CTB was reduced due to excess income. It was based on LTR of IB which also inc adult dep.

However client now had notification that overpaid IB (at this point we can only assume because of adult dep) because award of CA not declared.

As HB was calculated on incorrect rate of IB which now has to be repaid I don't suppose we can do anything now about what has turned out to be an incorrect assessment ?

And just to throw in another spanner - neither had he declared the CA to LA which would have given him full HB as cp would have been included in his app amount.

Assume it'll all be out of time......?

In principle, where a benefit it being repaid, the reduced entitlement of that benefit can be taken into account for HB/CTB (with the express exception of Tax Credits).

HOWEVER.... if the overall effect of the change(s) is beneficial to the clmt, the LA may decide your client falls foul of the "beneficial change" rule. In short, beneficial changes in circs must normally be notified to the LA within one calendar month barring "special circumstances". In your case, this is further complicated by the "relevant benefit" rule (from memory, I *think* CA is such a benefit).

The rule applies where a relevant benefit is awarded, or increased, (but NOT decreased) and this (normally) means the change in circs takes effect from the original effective date of that award or increase - it overrides the "beneficial change" rule.

So, it CA has been awarded, that, in itself, will probably REDUCE HB/CTB as the premium is less than the amount of CA. However, any overpayment will then be subject to correction by the reduction in IB. If there is a net UNDERPAYMENT, the LA may then fall back on the beneficial change rule.

NB: The LA may ask for evidence that the overpaid IB is actually being repaid. If there is no actual repayment of IB, it will count in full for HB/CTB, even if entitlement to IB has been removed.

IB and CA are overlapping benefits, so I think that CA has been wrongfully awarded.

If there has been an overpayment it more likely to be CA because IB is worth more than CA to a claimant.

Overpaid CA can be recovered from ongoing entitlement to IB though.

I think you need to be clear just what benefit has been overpaid and whether or not that overpayment is recoverable before considerign the effect on HB/CTB

Thanks v much to you both for your helpful comments.

I have to admit that at this stage it hadn't even crossed my mind that CA shouldn't have been paid. Time to retire.

IB and CA are overlapping benefits but adult dependant additions are different. You don't qualify for an adult dependant addition in IB if the dependant receives an earnings replacement benefit (like CA) which is higher (as CA will be). So the IB decision was correct.

Claimant's true income entitlement was higher than assessed by HB by the difference between IB adult dependant addition and CA = £11.10. Their true applicable amount however was also higher by the amount of the CP (£27.75). So HB may have been underpaid but unlikely to get it back for the reasons given above.

Richard Atkinson

Thanks Richard,

I was about to post again after I realised I'd been having a definite Homer moment about the overlapping benefits of CA and the IB adult dep!

BTW there's no difference in the rates - both are £50.55 as its LTR IB (I'm not the only one then ...!!) but yes there was the cp which should have been included if client had informed them.

Let's pretend I never posted in the first place eh