I have a client who has just been awarded bcakdated HB/CTB from May 06 to Dec 06 on the basis that her income has been Working and Child Tax Credits and Child Benefit only. She had stopped claiming Inc Supp as a lone parent and had made the Tax Credits claim as she had been offered a job, but she never managed to start.

I've seen conflicting advice on whether the £14.90 disregard should be applied to her HB/CTB award - one says that it should be applied for a Lone Parent in receipt of Working Tax Credits, although my reading of the legislation suggests that someone should be in employment.

can anyone clarify this?

cheers

If the £14.90 has been awarded as part of the tax credit award, then it should be disregarded for HB/CTB purposes (Schedule 4, paragraph (2)(a))

If the claimant wasn't getting tax credits, then she would have to be working, which is where the confusion often arises.

Do you mean HB reg schedule 4, para 17 (2)(a)? this refers back to the Working Tax Regulations which seem to state you have to be working.

My client hasn't been working, just claiming WTC, CTC and CHB (I don't want to get into the issue of the tax credits op!)

If your client was receiving Working Tax Credit she must have been working 16 hours plus, as I'm sure your first respondend meant to say so, as she is a lone parent, the additional disregard would have applied.

It would also apply to the following groups who work 16 hours a week or more:
- anyone else who got the Family Premium
- those in receipt of certain sickness/incapacity related benefits or elements
- those who are entitled to the 50+ element (even if they haven't actually claimed WTC)
It also applies to those who are working 30 hours plus and receiving WTC.

As you see they all have to be working 16 hours plus, in some cases 30 hours.

However, your client has evidently received a lump sum payment for arrears of Tax Credits. My understanding is that this can be treated as capital.

"However, your client has evidently received a lump sum payment for arrears of Tax Credits. My understanding is that this can be treated as capital."

Arrears of Tax Credits must be treated as capital. HBR 46(9) applies.

Quite right, I didn't mean to make it sound like the benefit regulations can be taken as optional by the authorities (though they may sometimes give that impression).

I wrote it in a bit of a rush, without my benefit books on hand, and was consequently rather sloppy.