Is backpayment of Council Tax Liability disregarded as capital for 52 weeks for ESA

gray1404

Is backpayment of Council Tax Liability disregarded as capital for 52 weeks for ESA purposes?

A family member recently received a back payment of council tax liability as they were awarded a Council Tax Exemption. I know that some backpayments are not classed as capital for the purposes of claiming ESA for 52 weeks. Is this one of them? I know that the rules state what is and what isn't but I don't have access to them.

Thanks.

tomtom256

Its not a benefit payment, so I would advise to check with ESA.

pmlindyloo

Yes, it is disregarded for 52 weeks.
Reduction of liability for council tax
52502 A payment made because of the reduction of council tax under local government
law1
is disregarded for 52 weeks from the date the payment is received2
.
Note: The amount of council tax a person has to pay is normally reduced if the
person can get a reduction. The disregard does not apply in that case. It only
applies if a payment is made instead.
1 Local Government Finance Act 1992, s 13 & 80; 2 ESA Regs, Sch 9, para 35

gray1404

pmlindyloo wrote: »

Yes, it is disregarded for 52 weeks.
Reduction of liability for council tax
52502 A payment made because of the reduction of council tax under local government
law1
is disregarded for 52 weeks from the date the payment is received2
.
Note: The amount of council tax a person has to pay is normally reduced if the
person can get a reduction. The disregard does not apply in that case. It only
applies if a payment is made instead.
1 Local Government Finance Act 1992, s 13 & 80; 2 ESA Regs, Sch 9, para 35

So the 52 week disregard does apply in this case? Thank you!

Can I just check exeactly which regulations/law it is that says that the disregard will apply?

Thanks!

CIS

gray1404 wrote: »

So the 52 week disregard does apply in this case? Thank you!

Can I just check exeactly which regulations/law it is that says that the disregard will apply?

Thanks!

http://www.legislation.gov.uk/uksi/2008/794/pdfs/uksi_20080794_300617_en.pdf

You need schedule 9, para 35 for the latest wording.

gray1404

Thank you.

Do we need to tell ESA about this payment received? Or do we not need to tell them until the 52 week is up (and only if there is any of the money left over that has not been spent) i.e. once it is capital.

My understanding is that you have to tell them about change of capital, but as this is not yet capital.

pmlindyloo

gray1404 wrote: »

Thank you.

Do we need to tell ESA about this payment received? Or do we not need to tell them until the 52 week is up (and only if there is any of the money left over that has not been spent) i.e. once it is capital.

My understanding is that you have to tell them about change of capital, but as this is not yet capital.

Yes, it is capital, just disregarded for income based benefits.

So, yes, you have to tell them. If it is contribution based ESA then having capital will make no difference. If it is income based ESA then it will be disregarded for 52 weeks.