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Forum Home  →  Discussion  →  Housing costs  →  Thread

Housing Benefit term in relation to Non - Dependent deduction

Krissie Newton
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Welfare Rights Adviser, Freshwinds, Birmingham

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My clients son is under 25 and receiving JSA and so I am about to dispute the NDD that is currently been applied to her HB and CTB (client is also receiving JSA). However, I am intrigued by the benefit decision notice in relation the Council Tax NDD only which states ‘Your claim has been calculated using ‘Better Buy’ calculation’.

Does anyone know what a ‘better buy calculation’ is, and how it may have been used to determine that an exempt non dependent is no longer exempt?!

Kevin D
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Independent HB/CTB administrator, consultant & trainer (Essex)

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Based on the info given, “better buy” almost certainly means the CTB part has been awarded on the basis of “Second Adult Rebate” (“SAR” or “2AR”).  Notwithstanding any possible errors by the LA, that is perfectly normal - it just doesn’t happen very often.

When dealing with non-deps for CTB, nearly all the IT systems undertake two calculations (in fact ALL of them should!).  One calc is the “normal” CTB and the other is SAR (which itself is just another form of CTB; it’s not a different benefit).  Whichever is the higher after the calculation is what is awarded and this appears to be what has happened in your client’s case - i.e. the amount of SAR is higher than “normal” CTB would have been.

Edited to add:  Relevant legislation (working age) is CTBR 62 in conjunction with Sch 2 of the CTB regs.

[ Edited: 13 May 2011 at 11:34 am by Kevin D ]
Gareth Morgan
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CEO, Ferret, Cardiff

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2nd Adult Rebate?

trishc
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System Support Officer, West Lindsey DC, Lincs

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Also known as Alternative Maximum Council Tax Benefit. (See why we say 2AR now?)
Where the CT payer has no partner and no-one pays them rent, if they have a “second adult” in their home (who effectively removes the single resident discount)  CTB can be calculated based on the income of that second adult.
A second adult on JSA(IB) would trigger an award of 25%. If that 25% is more than CTB based on the claimant s income less any non dep deduction, then the 2AR is awarded instead. Better buy.

Krissie Newton
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Welfare Rights Adviser, Freshwinds, Birmingham

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Thanks everyone, that’s so helpful.

So as an award of second adult rebate serves to increase rather than decrease a clients entitlement, and the fact that my client’s son in on IBJSA but only a 15% and not 25% award has been applied according to the benefit decision notice, this is incorrect and should therefore be revised to allow full CTB entitlement?

Krissie Newton
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Welfare Rights Adviser, Freshwinds, Birmingham

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Total Posts: 60

Joined: 16 June 2010

Ignore last post, I have re-read and understand now. Thanks again!