Sorry, I'll try again.

Scorpion600

TCO are paying me the disability element owed for October 06 to April 07 by carrying it forward on to this years (07/ 08) claim and paying it in monthly instalments.

As a result my housing benefit, which I have been receiving since March 07 has now been adjusted more than it should have been because they are having to treat this carried forward payment as monthly income.

I have been told by the housing benefit office that if the backdated payment had been given as a cheque it would have been treated as capital (savings) and not affected my claim.

I have been struggling financially after recently separating from my partner and already lost a lot of housing /council tax benefits along with free school meals ect. when I started to work part time, after costs I am only a little better off .

I was expecting the backpay by cheque and was hoping to spend it on some much needed stuff, instead it is being used to offset my housing/council tax benefit claim.


I wondered if any one had the same problem or any advice to give, I would really appreciate it.

real1314

well, what HB/CTB have told you is correct in that any "one-off" payments of Tax Credits are treated as capital rather then income.

You could argue that the extra money you are being paid is still an arrears payment, as it does not relate to the award for the current tax year. i.e that each extra amount paid every week/4 weeks is an individual payment of arrears and should therefore be treated as capital.

I'd think this would be a persuasive argument, anyone else?