Morning

A Simple Housing Costs Query

When Miss P’s parents first approached me, their concern appeared straightforward. Her landlord had increased the monthly housing charge by £100, taking it to approximately £1,400 per month, and they wanted help securing a revision of her Housing Costs Element.

On reviewing the claim, I identified that Miss P was being paid at the one-bedroom rate when she appeared entitled to a higher rate. Representations were made to DWP and, to its credit, the Department corrected the award and backdated the higher entitlement to the start of the claim. At that stage, the matter seemed resolved.

Looking Beyond the Original Issue

However, the wider claim review raised a further concern. Miss P was working in a nursery setting and receiving earnings of approximately £800 per month. She had originally attended as a volunteer before receiving payment for her attendance. Her role was limited and supervised, primarily involving interaction with pre-school children.

DWP had taken her earnings into account, but the Universal Credit statements showed that 55% of those earnings were being deducted from her award each month.

That raised an important question: Why had no Work Allowance been applied?

LCWRA, Work Allowance and Migration

Further investigation showed that Miss P had never been assessed as having Limited Capability for Work Related Activity (LCWRA), and that no Work Allowance had been applied. Given her lifelong condition, limited paid activity and supported role at the nursery, both issues should arguably have been considered when she migrated to Universal Credit.

The absence of a Work Allowance meant her earnings may have been subjected to the full 55% taper for a prolonged period, creating a potentially significant underpayment.

Obtaining Medical Evidence

To support the referral, I asked Miss P’s parents to obtain medical evidence from the family GP. The GP provided a Fit Note and a detailed covering letter confirming Miss P’s Down syndrome, her very limited work capacity, and the supported nature of her attendance at the nursery. The evidence was then submitted to DWP.

DWP’s Response

DWP asked for the Fit Note and supporting evidence to be uploaded through the Universal Credit account using the online change of circumstances process. That may be suitable where circumstances have genuinely changed, but this case raises a different question. 

No New Change of Circumstances

My response to DWP was that Miss P’s circumstances had not changed. Her condition, the nature of her nursery placement, and the support she requires are effectively the same as when she first claimed Universal Credit.

The question is therefore not whether a new circumstance has arisen, but whether relevant entitlement issues were overlooked at the point of claim and during migration.

I have asked DWP to ensure that all relevant evidence, previous correspondence and journal communications are placed before a Decision Maker for formal consideration.

The questions requiring determination are:

  • Whether Miss P should have been treated as having LCWRA from an earlier date.
  • Whether a Work Allowance should have been applied.
  • Whether any resulting underpayment of Universal Credit should now be revised and paid retrospectively.

The Wider Lesson

The wider lesson for advisers is to distinguish carefully between a genuine new change of circumstances and information that was available to DWP from the outset. Online reporting routes can be useful, but entitlement should not depend solely on the way information is communicated where the substance of that information has already been provided.

Awaiting a Decision

The case has now been referred to a Decision Maker. The central issue is whether Miss P’s entitlement to LCWRA and a Work Allowance should have been identified earlier, and whether any resulting underpayment should now be corrected.

I will provide members with a further update once the Decision Maker’s determination is known.

Key Takeaway

This case is a useful reminder that advisers should review the whole Universal Credit award, not only the issue that first brings the claimant forward.

What began as a straightforward housing costs enquiry uncovered a potentially more substantial entitlement issue involving LCWRA, Work Allowance entitlement and possible historic significant underpayment of Universal Credit.

It is often only by looking beyond the presenting issue that the most significant errors come to light.

Bill Irvine
UC Advice & Advocacy Ltd

www.ucadvice.co.uk