Housing Benefit: One-off Bonus

BaldEagle

Hoping that someone may be able to provide some assistance with my query.

I was claiming HB up until mid-April. Due to a salary increase, I was no longer eligible. Subsequently, I was made redundant and I opened a new claim for both HB and CT support in December. I am not currently working, these are the only benefits I am claiming and I have no other income.

My former employer has written to me advising that I will be receiving a bonus, prorated for the time I was with them.

How will this one-off payment be treated?

My opinion is that it should only be classed as "income" for the first period I was in receipt of HB (i.e. up until mid-April) as I didn't "earn" it in December since I was no longer working at that point.

I'll be reporting it to my LA as a matter of course but I wanted to know if anyone could advise me how it's likely to be treated, point me to official guidelines, etc.

tboo

BaldEagle wrote: »

Hoping that someone may be able to provide some assistance with my query.

I was claiming HB up until mid-April. Due to a salary increase, I was no longer eligible. Subsequently, I was made redundant and I opened a new claim for both HB and CT support in December. I am not currently working, these are the only benefits I am claiming and I have no other income.

My former employer has written to me advising that I will be receiving a bonus, prorated for the time I was with them.

How will this one-off payment be treated?

My opinion is that it should only be classed as "income" for the first period I was in receipt of HB (i.e. up until mid-April) as I didn't "earn" it in December since I was no longer working at that point.

I'll be reporting it to my LA as a matter of course but I wanted to know if anyone could advise me how it's likely to be treated, point me to official guidelines, etc.

Normally one off bonus' while you are employed are as you say included in the assessment of gross earning for that time frame.

So I suspect as it's for past employment it will be classed as arrears of earnings and count for the period it relates to.

The LA may well feel it's current arrears and include the money especially if you have no other income.

Definition of earnings
P2.70 For an employed earner, earnings mean any remuneration or profit derived from employment and includes any
I bonus or commission, including tips
2 payment in lieu of remuneration, such as a payment made by a liquidator when a company has been wound up and employees are owed earnings

I can't find anything in writing relating to arrears as it's in the shelter handbook.

BaldEagle

Thanks for the response, tboo.

I'm fully expecting it be be classed as arrears of earnings for the Jan-April period when I was claiming HB and accept this will result in an overpayment of benefit for that period.

I'm interested to know how they could class it as current arrears, though. If they do, over what period would they reduce my HB? Just for the week I received it? As an average over a period of time? Would they close my claim and make me resubmit after a specific time?

I'll probably be in a similar position at the end of the tax year as I've paid too much tax due to the payment of holiday, notice period, etc in my final pay so expecting a rebate.

Again, I have no problem with a percentage of that being "backdated" (i.e. the two weeks in April I was claiming HB) but feel it's harsh to class it as income when it relates to a period when I wasn't claiming.

tboo

I can't speak on how your LA would work it out but if they do use it as current income you can always ask for a revision on the assessment.

They may well ask what the period it goes over. eg bonus for the year, but it may not make a difference to which period they put it onto anyway as any extra income will make an overpayment

If they put it onto your current claim it may be for ease so they don't mess with a past claim.

If it's past earnings then any overpayment will reduce the current assessment by £11.10 per week.

They won't close your current claim or make you reclaim

BaldEagle

Thanks again for your response.

Once the money is paid to me and they've made a decision, I'll pop back with the outcome as I'm sure others will have encountered similar situations.