I have a client who was receiving Disabled Persons Tax Credit since 2000. Before this he was getting Income Support. Whilst in receipt of Income Support he was paid backdated Industrial Disablement Benefit, and consequently about £800 overpaid Income Support was recovered, which he paid with the backdated IDB. When his private compensation claim was settled 3 years down the line, the settlement amount was, of course, reduced by the amount of Industrial Disablement Benefit he had received. The clients point is this - in effect he has been penalised twice for being in receipt of IDB - his other benefits (Income Support and Disabled Persons Tax Credit) were reduced because he was in receipt of IDB, and then his compensation settlement was also reduced by the amount of IDB he received. He would have been financially better off by not claiming IDB in the first place. This doesn't seem to be right. Any ideas anyone?
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