If a person is on JSA but has a couple of breaks in their claim due to failure to sign on (the claimant had no income during the breaks in their claim) we would usually argue that based on nil income the client would have underlying entitlement to any Housing Benefit and Council Tax Benefit paid to them.

Please can someone advise what happens when the client has a lump sum paid as a gift during the break in JSA period. The amount is about £1000 and the client has not reached the capital limit. The client has not informed housing and council tax benefit of this money (is this a change of circs that he should advise about?).

Would this be treated as capital and as capital below £3000 would the client have an underlying entitlement to any overpaid benefit.

Any help would be appreciated.

Thank you

It looks and smells like a capital payment to me, assuming it was a one off and not for any particular purpose(?)

An increase in capital is reportable as a change of circs, but as you say, below the capital limit anyway so it wont make any difference. I would advise a client to report it anyway.

Therefore, not really sure what the problem is, or am I missing something?

PS lower capital disregard is £6,000 not £3,000.