The general rule, supported by myriad CDs, is that income must be attributed to the period it is in respect of; unless legislation deems otherwise (such as for Tax Credits).
Payments by the CSA are invariably for a specific period - whether current, or a past period. Where it is possible to identify the period such payments are in respect of, an LA should normally take the payment(s) into account for the period(s) in question.
If your client has only received one payment for one week (leaving aside the arrears), there is no basis for the LA to continue taking into account income not actually being received (at least not in these circumstances).
BUT, if arrears are subsequently paid by the CSA for a period the LA has already assessed as nil income, the LA is entitled to reassess that prior period.
Where it has proved impossible to identify the past period for CSA arrears, only then should arrears be treated as capital. Of interest, the CSA are terrible at being able to identify periods to which arrears are attributable.
Regards.
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