Income support and TC & FA

d1111

I will try and keep this as short as I can...

I have 2 children & I claim Working & Child Tax Credits & family allowance. My daughter became pregnant at the age of 17 and my grandchild was born in Jan 2009 (my daughter was now 18). I rung the Tax Credit department to tell them of the changes (my grandson being born and how to claim for him). She was still in full time education (6th form) and living with me.

But as an "independent person", she was able to claim income support at the age of 17 and apparently 'I' should have told the Tax Credit & Family Allowance departments of her claims and therefore not eligible for my benefits even though I was 'responsible' for her.

Not knowing anything about the Income Support system, I was of the understanding because she had help to fill in the form, I presumed they would have asked about her current situation, i.e.. living at home and the parent's income and benefits and all was in hand.

But no! The current system allows for a parent who is 'responsible' for a child should automatically know or be told by the 'independent' child claiming Income Support to tell the departments of their claim. How can a child be an 'individual' and on one hand and on the other have them being 'responsible' under the parent. Surely you should have to surrender one or the other and not leave it down to the 'individual/child' to inform the parent?

If I knew that by my daughter claiming Income Support it would have meant that I was not eligible for my benefits, then the claim on Income Support would have had to stop.

So, 3 years later, after my daughter made her claim for Income Support, I have been told that I was not eligible for my benefits and have to pay back around £3,500!

I would welcome any helpful advice.

pipscot

d1111 wrote: »

I will try and keep this as short as I can...

I have 2 children & I claim Working & Child Tax Credits & family allowance. My daughter became pregnant at the age of 17 and my grandchild was born in Jan 2009 (my daughter was now 18). I rung the Tax Credit department to tell them of the changes (my grandson being born and how to claim for him). She was still in full time education (6th form) and living with me.

But as an "independent person", she was able to claim income support at the age of 17 and apparently 'I' should have told the Tax Credit & Family Allowance departments of her claims and therefore not eligible for my benefits even though I was 'responsible' for her.

Not knowing anything about the Income Support system, I was of the understanding because she had help to fill in the form, I presumed they would have asked about her current situation, i.e.. living at home and the parent's income and benefits and all was in hand.

But no! The current system allows for a parent who is 'responsible' for a child should automatically know or be told by the 'independent' child claiming Income Support to tell the departments of their claim. How can a child be an 'individual' and on one hand and on the other have them being 'responsible' under the parent. Surely you should have to surrender one or the other and not leave it down to the 'individual/child' to inform the parent?

If I knew that by my daughter claiming Income Support it would have meant that I was not eligible for my benefits, then the claim on Income Support would have had to stop.

So, 3 years later, after my daughter made her claim for Income Support, I have been told that I was not eligible for my benefits and have to pay back around £3,500!

I would welcome any helpful advice.

Tax credits are only payable for a "qualifying child" - and as your child was claiming income support in her own right, she was no longer a "qualifying child" as far as tax credits are concerned even though she was in full time education.
http://www.hmrc.gov.uk/manuals/tctmanual/TCTM02220.htm

Did you tell tax credits office that she was claiming income support when you put in your claim for tax credits for her?

wealdroam

OP, how many of you are going on holiday to America?

https://forums.moneysavingexpert.com/discussion/comment/43447300#Comment_43447300

I must look into the benefits of this tax credit stuff.

Probably best to cancel the American holiday if you have to pay back £3,500.

AimeesMum_2

I believe that she could have only claimed income support if she told the benefits office that she was responsible for a child and a single parent, albeit living under her parents roof. If she didn't tell the DWP that she was a parent then she should have been claiming Job Seekers Allowance. I also don't believe that you can claim income support while being in further education.

Why did she not claim tax credits for the baby herself?

pipscot

I have actually just received my award pack for last year and the checklist does include - "things you need to tell us about... - if a child starts claiming income support in their own right" so I'm afraid the onus was on the OP to inform tax credits about this (rather than the daughter needing to inform DWP about it) and therefore there has been an overpayment.
The best you could probably do now is to work out a repayment plan with Tax Credits. Sorry this is probably not what you want to hear - hope you get it sorted. :)

d1111

Why do people always assume they know the whole picture then inject their sarcastic remarks? People put questions on here for help, some people just can't help themselves!

d1111

When she put her claim in, the baby hadn't been born and she was in full time education so wouldn't have been claiming for JS.

d1111

The system is back to front. The IS should be the ones informing the person who is 'responsible' for the child, not having to rely on the child to be telling the parent who should in turn know they should inform others. I thought I had done all the right stuff, the system doesn't go the extra mile to make sure people understand. I have never been involved with IS as I have always worked but have heard so many horror stories and how dysfunctional they are.

DX2

d1111 wrote: »

The system is back to front. The IS should be the ones informing the person who is 'responsible' for the child, not having to rely on the child to be telling the parent who should in turn know they should inform others. I thought I had done all the right stuff, the system doesn't go the extra mile to make sure people understand. I have never been involved with IS as I have always worked but have heard so many horror stories and how dysfunctional they are.

As far as IS are concerned she was no longer classed as a "child" and due to data protection they (DWP) have no right to be informing/contacting said "parent".

Did your daughter not tell you what she was doing?

pipscot

DX2 wrote: »

As far as IS are concerned she was no longer classed as a "child" and due to data protection they (DWP) have no right to be informing/contacting said "parent".

Did your daughter not tell you what she was doing?

Agree with this - surely your daughter told you she was claiming IS? I can't believe that within a family, you are seriously expecting DWP or Tax Credits to inform each member what the other members are claiming!!! If your daughter did not tell you that she was claiming IS, I can understand you being upset, but not with DWP - you should be angry with your daughter for not being honest with you!!
The point is, if your daughter was claiming a benefit in her own right, then you should have informed Tax Credits of this. You didn't (the reasons why not are irrelevant and not our business) so you have received an overpayment.
My advice is still - try to work out a repayment schedule that is possible for you to manage. :)