We have a case now at Commissioners concerning overpayment of HB/CTB as a result of the change in clients income from WFTC to WTC.

Local authority maintained that they received guidance from DWP that they could not stop an award of HB because claimants WFTC would change to WTC in April 03. Rather that they must continue to pay the award but on basis of nil WTC income from 4/03 until notified of the WTC award by IR or claimant. However, despite an adjournment they failed to produce this (and other)evidence.

I cannot find any HB Circulars etc to this effect. Can anyone tell me if it actually exists and is it available on any website?

The O/P occured as nil WTC was included in award from 03.We were sucesful at tribunal in arguing official error. Guidance (or lack of it) on the change to WTC and what action LA should have taken or failed to take was part of our official error argument! There was of course other argument about whether the claimant did in fact disclose the WTC award as soon as she received it!

I dont think the circulars are of any relevance. The Commissioners have been very scathing in the past where LA's have relied on circulars or guidance.

The only issue is whether or not there was an official error in terms of the way the LA applied or did not apply the law.

The other aguments re facts will be relvant but only if the Tribunal gave inadeqate reasons or reached a conclusion that a Tribunal properly instructed as to the law could not have come to when considering the evidence properly

is it definitely a circular ?

any chance it was 'Housing Benefit and Council Tax Benefit: A guide to new tax credits' (incorporated into the HB Guidance Manual in April 2004)

see ... http://www.dwp.gov.uk/housingbenefit/new-tax-credits/index.asp

I'd be really interested to know how this goes as there is an identical case here.

It will be some time before a decision - is your case at comm level? I'd be happy to discuss our argument if it assists. contact me on 01865 744165.

Can't help with the exact references to Regs I'm afraid, and I may well be writing things you are already aware of - if this is the case -sorry.

My understanding at the time was that as WFTC ceased to exist on 4.4.03, HB could not include it as an income. Therefore had to reassess HB claims from 5.4.03 based on the income the claimant was actually receiving. Due to the problems with the IR few people had received their TC award so many claimants got full HB.

Rules on TC's are that any arrears payments are treated as savings for HB. That the amount of TC on a new TC claim should only be included as income for HB from the Monday after the date on the TC notification letter.

So the overpayment shouldn't cover the period before the claimant got their TC notification letter.

Due to the problems with the IR at this time and the fact that LA's were stuggling to get through all the TC award letters, they were given special provision to class certain overpayments due to their own delay as DWP error and it was suggested these should not be recovered from the claimant - but this is guidance.

All this is in the Tax Credit Guide previously mentioned - a good place to look at this is on the hbinfo.org website.

I hope this is some use.