We had query from local mental health team about client with ongoing mental health problems who currently receives WTC even though she is no longer working. Appears she was ? told by either IR or DWP that she does not need to report " these changes as they are not relevant changes in circumstances " and also she can receive WTC for 6 months after she has stopped working.

I would have thought this was a relevant change in circs which she has to report to stop any OP from occuring. Any and all views would be appreciated.

Hi. Had one similar a while ago. Check out WTC(EMR)Regs 2002 6(1)which covers entitlement during periods of illness or incapacity for work.

In my clients case she was repeatedly told by the H/line that she could continue on WTC without any probs. Took some time to get the IR TCO to see sense.

Regards

Quinn

Thanks for your response, will check this out later and hopefully client won't have any probs.

It seems to me there is a danger here which is that if your client wants to claim JSA or IS, their WTC will count as income and reduce their entitlement to the income related benefit.

Yet the WTC will all count as an overpayment when the end of year reconciliation is done. But they won't ever get back the IS or JSA they would have had without the WTC.

I think this could become a common problem when employers stop paying WTC.

One thing I'm curious about, was your client self employed? if not how come they weren't being paid with their salary?

Client in same situation and letter from IR states they will make all payments direct to him.

More interestingly he made claim for IS and despite fcat that WTC still being paid they have paid IS, apparantly he was told in interview that they knew about probs with WTC and that this would make no difference to IS.

So client is now being overpaid IS and WTC. But at least it means we can make a claim for a CCG which he needs!!!