Universal Credit & Local Housing Allowance Rates

[robbie66]

Thanks for getting back nukecad just to complicate things further if you remember a couple of years back I got a good sum of backdated money from the esa debacle correct me if I’m wrong but that money wouldn’t count as savings as it was a monumental mistake from the dwp

[nukecad]

Thanks for getting back nukecad just to complicate things further if you remember a couple of years back I got a good sum of backdated money from the esa debacle correct me if I’m wrong but that money wouldn’t count as savings as it was a monumental mistake from the dwp

Arrghh, that is more complicated, and I couldn't say for sure.

Some of those backpayments were classed as 'Official Error' but others were not. (Just why that was was never clear, and at the time everyone was just happy at the backpayments so I don't think anyone ever really challenged the difference).
If you recall they tried to not pay anything before 2014, so that was the big fight at that time and how long it would be disregarded for was not as important.

If it's a backpayment for 'Official Error' then it's disregarded for the life of your benefit claim.
If it's not 'Official Error' then it's disregarded for 52 weeks.
Which is why they were trying to fudge things about those IB-ESA backpayments.

As far as I remember to be 'Official Error' or not is somewhat arbitaray and depends on the amount of backpayment.
(I think that for the IB-ESA cockup over £5,000 backpayment was 'official error' but under £5K wasn't - don't quote me on that, they were trying various tricks to avoid paying what they owed, and I've had some beers since then)

Do you still have a copy of your letter about your backpayment?
Maybe it says 'Official Error' or how long the backpayment will be disregarded for?

TBH I wouldn't rely on asking a DWP telephone jockey, unless they have been doing the same job for 5 year or so they won't have a clue about the IB-ESA cockup and will just try to bulls*t you - and no doubt trot out the policy and tell you to claim UC.

If it's not on your backpayment letter (or if you can't find it) you may be better writing (yes snail mail) to the DWP and asking how long your backpayment for the cock-up is disregarded as savings/capital - at least you would then have it in writing.

[robbie66]

Hi nukecad just dug out the old letters as I keep everything the dwp sends me it says we will not add the payment to any capital savings you have already told us about until your claim ends if you make a new claim for benefits after the 16-05-2019 your benefit maybe affected by this payment so again a tad complicated as I’ve transferred over to universal credit so I’m guessing that as long as I claim disability benefits the backdated money would not be counted as capital

[nukecad]

You are OK there, it's still disregarded in UC for the life of the UC award.

The disregard for backpayment of benefits in ESA is carried over into UC, provided there is no more then a month between ESA ending and UC being claimed.

Just in case you need it then it's: The Universal Credit (Transitional Provisions) Regulations 2014, 'Arrears of benefit disregarded as capital'.
Regulation 10A-(1)(a)(ii), (c), and (2)

10A.—(1) This regulation applies in relation to the calculation of an award of
universal credit (the “current award”) where the claimant has received a payment of
arrears of benefit, or a payment made to compensate for arrears due to the non-payment
of benefit, of £5,000 or more, and the following conditions are met–

(a) the payment–

(i) is received during the current award; or
(ii) was received during an award of an existing benefit or state pension
credit (the “earlier award”) and the claimant became entitled to the current
award within one month of the date of termination of the earlier award;

(b).......
(c) in the case of a payment falling within sub-paragraph (a)(ii), it was disregarded
from the calculation of the claimant's capital for the purposes of the earlier
award;
(d).......

(2) Where this regulation applies, notwithstanding anything in the Universal Credit
Regulations, the payment is to be disregarded from the calculation of the claimant’s
capital for 12 months from the date of receipt of the payment, or until the termination
of the current award (if later).

[robbie66]

Thanks for the information nukecad we’d be lost without you on here