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IB underpaid for >12 years - LUMP SUM!

2

Comments

  • Does anyone have a link to where I can find what the age addition rate has been for previous years please - it will be helpful to have done my homework before IB get back to me and/if they try it on.
  • tattoed_bum
    tattoed_bum Posts: 1,189 Forumite
    hi could someone expain to me what this is please , my dad had a call last year from the benifits office last year saying he had been underpaid and was due a lump sum back and that they would look into it but we havent heard from them since i was wondering if it was this
  • stazi
    stazi Posts: 1,295 Forumite
    HGLT

    All that needs to be established is how old was your mother on the first day of her incapacity. If she was under age 45, then she would be entitled to the low rate age addition- simple as that.

    This addition is not new, it was introduced with IB on 13/4/1995. If she is owed the arrears they will be paid and JCP has no reason to 'try it on'.
  • suelees1
    suelees1 Posts: 1,617 Forumite
    Does anyone have a link to where I can find what the age addition rate has been for previous years please - it will be helpful to have done my homework before IB get back to me and/if they try it on.

    The Institute for Fiscal Studies has the rates for all benefits going back years. The info is in an excel spreadsheet. Problem is I can't open it on my PC this morning as my software seems to have disappeared so I can't tell if it will give you the age allowances

    http://www.ifs.org.uk/ff/indexben.php
    I'll get you, my pretty, and your little dog too!
  • Stazi - I know its not right for JCP to try it on but that was the opinion I got yesterday when they said they needed to check the "legality" of this.
  • OK so now have the historical data for the rates from past years so if/when the JCP come back with a figure including comp I want a rough figure to negotiate with.
    Was thinking in line with the small claims court which adds daily interest at rate 8% p.a. but it would be 12 years of 8% on some of it, 11 years at 8% on the next year with the prevous years added on etc (I know what I mean!) so any ideas on how to calculate.
    My thought was
    1996-97 = year 1 = 52 weeks * age addition = £X + 8% = £y
    1997-98 = (year 1 + (52* age addition)) + 8% = £a
    1998-99 = ((52*aa) + £a) + 8% and so on.
    Any improvements on that?
    Thanks guys
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    That seems ok, I cannot improve on that but I dont know how the DWP would work out the compensation, it may just be a lump sum.
  • agal
    agal Posts: 282 Forumite
    I am entitled to the Age Addition but have never received it as it is an "overlapping benefit" with the Additional Pension element of Incapacity Benefit.
  • stazi
    stazi Posts: 1,295 Forumite
    HGLT

    If your mother is entitled to the age addition, the arrears would be paid as a lump sum, and don't forget her present benefit rate would need to be corrected.

    The compensation may be paid separatly together with the calculation of interest. I think your 8% assumption is a bit high, as I think that DWP would have a 'set' % rate in regulations and/or just use the bank base rates over the period.

    If someone at JCP used the word "legality", I would think that's it's just the wrong word. As I said earlier, if she's entitled to it-she's entitled to it.
  • GlasweJen
    GlasweJen Posts: 7,451 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    brilliant news OP i hope it gets sorted quickly :)
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