ISMI - How do you calculate it?

Glyndwr_2

No, the £102.15 is long term IB + age addition (under 35 or whatever the lower age limit is). Sorry, should have pointed that out before.
She also gets DLA LRC.

So that makes their calculation correct (given we don't know her exact mortgage balance at the moment)?

I think I'm there on understanding it now! Thanks so much everyone. I think I just switch off with maths from O-level days. I'm good at Countdown numbers though.

blue_sea

Glyndwr wrote: »

they're holding the rate at 6.08% (excluding any changes as a result of the rate change today).

Did the ISMI rate hold at 6.08%?

dmg24

Glyndwr wrote: »

No, the £102.15 is IB + age addition (under 35 or whatever the lower age limit is).
She also gets DLA LRC.

So that makes their calculation correct (given we don't know her exact mortgage balance at the moment)?

I think I'm there on understanding it now! Thanks so much everyone. I think I just switch off with maths from O-level days. I'm good at Countdown numbers though.

I hadn't thought about the age addition, but that would seem correct (although a tad unfair?).

I love Countdown as well, though I do miss Richard Whiteley!

dmg24

blue_sea wrote: »

Did the ISMI rate hold at 6.08%?

It should have, but people are receiving letters telling them that their rate has gone down.

blue_sea

http://www.dwp.gov.uk/resourcecentre/standard_rate_of_interest.pdf

don't know if this helps??

Glyndwr_2

Ok, so having established that the DWP were correctly calculating the ISMI payment (thanks), they continued to send they usual generic letters saying the payment was going down i.e. in line with the recent interest rate reductions.

My friend queried this in writing and has received 2 'personal' letters basically stating that the Bank of England base rate has gone down, therefore the amount the DWP will pay will/has gone down in line. They don't believe that the Government has announced anything, or that their own website states differently.

They've paid the bank the wrong (lowered) amount this month & therefore my friend has had to pay significantly more than she should have in order not to have any arrears.

Do we need to appeal? The JCP still insists that they are right and have virtually accused her of making up the rate fix.

dmg24

Glyndwr wrote: »

Ok, so having established that the DWP were correctly calculating the ISMI payment (thanks), they continued to send they usual generic letters saying the payment was going down i.e. in line with the recent interest rate reductions.

My friend queried this in writing and has received 2 'personal' letters basically stating that the Bank of England base rate has gone down, therefore the amount the DWP will pay will/has gone down in line. They don't believe that the Government has announced anything, or that their own website states differently.

They've paid the bank the wrong (lowered) amount this month & therefore my friend has had to pay significantly more than she should have in order not to have any arrears.

Do we need to appeal? The JCP still insists that they are right and have virtually accused her of making up the rate fix.

I would contact your MP now, you have done all that you can. Considering the amount of people that will become entitled to ISMI in Jan, your local BDC are going to be in one almighty mess if they are applying the incorrect rate to all their claimants.

When contacting your MP, it would be worth giving them the above link, as they probably won't be aware either!

real1314

BDCs (benefit delivery centres) don't actually calculate the rate themsleves, it's all done nationally, and automatically....
Unless the case is not paid via the computer system and is maintained clerically, which happpens if the computer system has a problem with a particular case. In the OPs position, I'd check with the BDC if the case is clerical, and if it's not, wait for it to all be sorted. If it is clerical, I'd ask them to check some computer maintained cases and explain why they are being paid at the held rate, rather than tracking the BOE.
Might be quicker than getting the MP involved?

dmg24

real1314 wrote: »

BDCs (benefit delivery centres) don't actually calculate the rate themsleves, it's all done nationally, and automatically....
Unless the case is not paid via the computer system and is maintained clerically, which happpens if the computer system has a problem with a particular case. In the OPs position, I'd check with the BDC if the case is clerical, and if it's not, wait for it to all be sorted. If it is clerical, I'd ask them to check some computer maintained cases and explain why they are being paid at the held rate, rather than tracking the BOE.
Might be quicker than getting the MP involved?

I know of several people that are receiving the correct rate, so can only assume that the OP is a clerical case. The BDC's are going to be swamped this month, the OP is not going to be given any priority unless there is intervention from someone with some authority. Remember that they have already queried it and got nowhere. If they just wait until someone bothers to sort it out, that could mean another underpayment. I doubt the OP's friend has the finances to keep topping up these underpayments.

vimal

From the Goverment web site
http://www.opsi.gov.uk/si/si2008/uksi_20083195_en_1

under "Amendments relating to the standard rate of interest"
It seems that the changes wete made on the 15th December and that payments
will be made from 4th Jan.