A8 Client came off JSA to start work - did not inform HB hence overpayment recovery. Worked for 2 months then stopped and supported by family ( did not reclaim JSA ).

HB have refused underlying entitlement for first 2 months as the work was not registered and for the rest of the period as not working or claiming JSA, so no R2R.

I can understand the second period, but with regard to the first - obviously unregistered work does not count towards the 1 year qualifying period, but whilst an A8 is actually working, even if the work is unregistered, do they not have some R2R which could be used for underlying entitlement?

Thanks!

Unfortunately not. Rather than a long post, have a look at reg 21AA IS regs and the commentary on page 304 of the 2007 Soc Sec leg vol 2. The relevant HB provisions are in reg 10 HBR, but they say the same thing for your purpose.

Basically, the claimant must be a 'qualified person', which includes workers. In the case of A8 and A2 nationals, the definition of qualified person is modified such that they must be properly registered whilst in work, or otherwise exempt from registration.

I've seen a few cases where exemption hasn't been spotted by DWP, so always worth checking.