DLA and debt recovery companies

wardie2437

We have been given conflicting advice

DebtLine say as DLA is NOT a benefit but an award and is not means tested - we do not have to include it for calculations when being asked for your "income" on an income and expenditure form.

CAB say the opposite

Which is correct?

Hammyman

Debtline. If you're asked if you get it, you have to state it however it is not used in calculations to a detrimental effect.

richard9991

you have to include it as money coming in but put it down as care/mobility in expenditure

fluffymovie

Hammyman wrote: »

Debtline. If you're asked if you get it, you have to state it however it is not used in calculations to a detrimental effect.

Hammyman, could you point to the legislation on this?

Reason for asking is that for HB/CTB, DLA is classed as a relevant benefit and so I would expect that it should be called a benefit. There are lots of benefits that are not means tested such as Child Benefit.

wardie2437

I'm sure someone said DLA is NOT a benefit it's an allowance and it is NOT means tested.

richard9991

Dla is ignored for hb ctb and esa ib and income support as it for care/mobility needs infact you may get more in income based benefits if you get middle care or high care component of dla.

Emmzi

there isn't any relevant law here as you do not HAVE ti fill in a form for a debt recovery agency. You only HAVE to fill it in if it is for the court. For court, you would show the income, and you would show the related expenditure covering the disability needs, so that you have complete disclosure.

I would suggest you do the same here so that if the debt does end up in court you have been consistent.

Cat1

We are in various dealings with Debt Management / IVA type things at the mo I receive DLA for my eldest son. We have to include it in the household income and then discount the whole amount as a household expense. At least then the DLA is disclosed but it won't be used to pay creditors.

wardie2437

great - thats what I'll do