What constitutes a change of circumstance for means tested benefits?

grumpyoldnumbersman

Thanks Fluffymovie. Perhaps, with your experience in these matters, you can share it with the forum just how consistently you see claimants "own up" to having inflationary increments to their benefits...?


Is this really expected?


I guess inflation is a good thing for the treasury. it not only shrinks the National Debt in real terms, it also shrinks the welfare budget!

grumpyoldnumbersman

Thanks Tiddlywinks, but if there were no flaws in the system my Dad wouldn't have any issues... ;-)

grumpyoldnumbersman

Thanks CIS. The summons states that my Dad is required to say why he hasn't paid the tax so I assume we will at least get a hearing. I thought forum members might like to know that throughout the dispute - which has gone on for over a year - the council have steadfastly refused to answer the following questions:




Where, in the documentation I would have been issued with as a claimant, would it have been made clear that either 1) Normal indexation of private pension in line with retail prices, as it is with the state pension, or 2) Changes to net income by dint of normal taxation policy would constitute a change of circumstances thus notifiable to the council?


If such clear information does not exist, then why am I being singled out from other applicants whose net income will also change every year as a result of normal indexation of pension income and by dint of budgetary adjustments to normal taxation? I believe this would extend to almost every claimant.


I guess we should be resigned to having to pay up based on these replies. Not of course what I was looking for but thanks to all members who engaged.

sleepless_saver

grumpyoldnumbersman wrote: »

Where, in the documentation I would have been issued with as a claimant, would it have been made clear that either 1) Normal indexation of private pension in line with retail prices, as it is with the state pension, or 2) Changes to net income by dint of normal taxation policy would constitute a change of circumstances thus notifiable to the council?

I am struggling to understand what your difficulty is. The benefit is means tested. If there is a small increase in income then you either let the council know right away in which case they adjust the benefit payment and there is no problem, or you wait till they realise your income has increased and send an overpayment notice which will be followed up by enforcement action if you don't pay up. Your choice.

Are you asking them to ignore the fact that your father's income has increased? I doubt their auditors would be happy with that.

Incidentally, many private pensions don't increase with inflation as you seem to assume - plus there are many other reasons why a pensioner's income might vary. The council cannot be expected to second guess what your father's income might be from one year to the next.

grumpyoldnumbersman

sleepless_saver wrote: »

I am struggling to understand what your difficulty is. The benefit is means tested. If there is a small increase in income then you either let the council know right away in which case they adjust the benefit payment and there is no problem, or you wait till they realise your income has increased and send an overpayment notice which will be followed up by enforcement action if you don't pay up. Your choice.

Are you asking them to ignore the fact that your father's income has increased? I doubt their auditors would be happy with that.

Incidentally, many private pensions don't increase with inflation as you seem to assume - plus there are many other reasons why a pensioner's income might vary. The council cannot be expected to second guess what your father's income might be from one year to the next.

But the council surely know that state benefits are indexed?


If indexation of one benefit simply cancels out another and requires an administrative exchange every time, is this not a slightly inefficient way of doing things?


And the point still remains: I am guessing that the vast majority of claimants have some sort of benefit that is indexed. This is presumably in line with the cost of living. Therefore, do HM government and its agencies really expect legions of claimants to interpret having the same income in real terms as a change of circumstance?


Does anyone know just how many claimants regularly make these declarations?

dodger1

grumpyoldnumbersman wrote: »

Where, in the documentation I would have been issued with as a claimant, would it have been made clear that either 1) Normal indexation of private pension in line with retail prices, as it is with the state pension, or 2) Changes to net income by dint of normal taxation policy would constitute a change of circumstances thus notifiable to the council?

Of course it's a change in circumstances the net income has risen, how much clearer can that be? The reason for the increase is irrelevant, an increase is an increase and should therefore be notified.

dodger1

Here is a list of means tested benefits, so yes any increase in income should be notified, with tax credits it's yearly the others I don't know but anyone receiving those benefits should know.

List of Means Tested Benefits:

• Council Tax Benefit
• Education Benefits i.e. free school meals
• Employment and Support Allowance (ESA) (income based)
• Health Benefits
• Housing Benefit
• Income Support
• Jobseekers Allowance (JSA) (income based)
• Pension Credit
• Social Fund
• Tax Credits (Child Tax and Working Tax Credits)

StormyWeather_2

grumpyoldnumbersman wrote: »

And the point still remains: I am guessing that the vast majority of claimants have some sort of benefit that is indexed. This is presumably in line with the cost of living. Therefore, do HM government and its agencies really expect legions of claimants to interpret having the same income in real terms as a change of circumstance?

JSA/ESA/IS increase by up to a couple of £s each April. The council will have claimants listed as receiving these income based benefits, so there's no need for them to let the council know about this.

Pensions & income from paid work vary, the council won't have direct access to the figures, so the claimant should inform them.

grumpyoldnumbersman

StormyWeather wrote: »

JSA/ESA/IS increase by up to a couple of £s each April. The council will have claimants listed as receiving these income based benefits, so there's no need for them to let the council know about this.

Pensions & income from paid work vary, the council won't have direct access to the figures, so the claimant should inform them.

Many thanks to Stormyweather in particular and all other posters for your comments. As irritated as I am with what seems rather unfair to me that the proportionate retraction of benefits has effectively cancelled out my dad's income keeping pace with inflation whilst on Council Tax benefit, I am grateful for being able to cancel the court hearing and allow my Dad to sleep well tonight. He will discuss repayment terms with the council tomorrow.


As a thank you to the forum, I will post an interesting pointer on planning how to take your pension in such a way as to maximise your net income and your family's legacy. I will post on here when I have done it so I can direct you to it.


All the best,


Glyn

missapril75

grumpyoldnumbersman wrote: »

But the council surely know that state benefits are indexed?

But not all go up at the same rate. Also, people have different paydays so increases are received on different dates.