I would appreciate everyones thoughts on this.

Our LA have advised that where any existing customers have overpayments we will be looking to increase the recovery rate by 50% of any child benefit disregard.

This just doesnt seem fair and in the spirit of taking CHB out of HB to me. Does anyone have any thoughts on whether this is allowable under the regs.

Thanks

hmm, perhaps not:
A27-2008
53 As well as the above rates of recovery, an LA can increase deductions by half (50%) of certain disregards, if applicable for
• earnings
• regular charitable income or voluntary payments
• War Disablement Pension or War Widows Pension

The authority for the 50% deduction is found in (e.g.) HB Reg 102(4)

"(4) Where, in the calculation of housing benefit, the amount of earnings or other income falling to be taken into account is reduced by reason of paragraphs 3 to 10 of Schedule 4 (sums to be disregarded in the calculation of earnings) or paragraph 14 or 15 of Schedule 5 (sums to be disregarded in the calculation of income other than earnings), the deduction under paragraph (2) may be increased by not more than half
the amount of the reduction."

Paras 14-15 of Sch 5 are at present as follows

"14.—(1) Subject to sub-paragraph (2), any of the following payments–
(a) a charitable payment;
(b) a voluntary payment;
(c) a payment (not falling within sub-paragraph (a) or (b) above) from a trust whose funds are derived from a payment made in consequence of any personal injury to the claimant;
(d) a payment under an annuity purchased–
(i) pursuant to any agreement or court order to make payments to the
claimant; or
(ii) from funds derived from a payment made, in consequence of any personal injury to the claimant; or (e) a payment (not falling within sub-paragraphs (a) to (d)) received by virtue of any agreement or court order to make payments to the claimant in
consequence of any personal injury to the claimant.
(2) Sub-paragraph (1) shall not apply to a payment which is made or due to be made
by–
(a) a former partner of the claimant, or a former partner of any member of the claimant’s family; or
(b) the parent of a child or young person where that child or young person is a member of the claimant’s family.

15. Subject to paragraph 34, £10 of any of the following, namely–
(a) a war disablement pension (except insofar as such a pension falls to be disregarded under paragraph 8 or 9);
1(b) a war widow’s pension or any corresponding pension payable to a widower or surviving civil partner;
(c) a pension payable to a person as a widow, widower or surviving civil partner under 2 any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armedforces of the Crown"

There is no authority under the present Regs to deduct half of the planned child benefit disregard, and I dont know of any amendment giving that authority

Thank you very much Stainsby I have sent an e mail to our HB section to ask what authority/amendment they are using for this and I will let you know. Traditionally our local authority has never recovered 50% of earnings disregards they have just recovered £12.80 for fraud payments etc. However our benefit section is about to be outsourced and it looks like Capita might be the succesful bidders and they do (apparently) recover op's at 50% of earnings disregards......

Have just received this response from our local authority -
Schedule 5 will be amended to provide for the full disregard of child benefit. It is currently not disregarded so doesn't appear in the schedule at present.

Just looked up the amending Reg (SI 2009 no 1948) and the child benefit disregard will be inserted at the end of Sch 5 (i.e a new para 65)

"Disregard of child benefit from income other than earnings
3.—(1) At the end of Schedule 5((sums to be disregarded in the calculation of income other than earnings) to the Housing Benefit Regulations 2006 add—

“65. Any payment of child benefit"

This means that Reg 102(4) will need to be amended if there is to be any authority to deduct 50% of the child benefit disregard

hi Stainsby

I have just received confirmation from our LA (who are actually very good) that they have seen a draft and it doesn't look like they have amended regulation 102(4) so you are correct they will not be able to do this.
I will check the final version of the Si when it comes through but I don't think it will be different from the draft,