I have a client who receives a pension payment of £1500 every March from his previous employer. In July he lost his job and is claiming HB. Reg 34 states that any payment received under an annuity shall be treated as income. If HB treat this as notional income we will argue that he did not deprive himself etc, however is there ever any argument for treating this as capital? Thanks

Sorry, I am not clear what the issue is here. Has he now lost this payment through the loss of his job?

No sorry the point I was trying to make was that he was working when he received his last pension payment, therefore he didn't spend it to gain benefit, he wasn't claiming any. He will receive another payment next March and every year thereafter. The issue is can these annual payments ever be counted as capital?