Underpayment of UC

KRLG

I am the carer for my disabled child and was in receipt of CTC until separation of partner
I have been underpaid UC due to not receiving the carer element but have been advised by UC that they may use the underpayment of UC to offset the overpayment of CTC

poppy123456

Yes they can take any money they owe you to pay off any debt. At least you will no longer owe any money. 

KRLG

Thanks Poppy12345
I thought as detailed in the FOI request as attached that as it was for caring costs it could not be used to pay overpayments/debts?

poppy123456

Im sorry, I can’t read that link on my device.

KRLG

Hi Woodbine

Have copied the part which details when when are arrears are not paid to debt management below:-

"When arrears are not offered to Debt Management"
Arrears are paid to the claimant and not offered to Debt Management if any of the following reasons caused all or part of the underpayment:-

housing costs

late verification of a child

late verification of a disabled child

late verification of caring costs

childcare costs

the ending of a sanction

the removal of a sanction

calcotti

poppy123456 said:

Im sorry, I can’t read that link on my device.

Try this
https://data.parliament.uk/DepositedPapers/Files/DEP2022-0860/160._Underpayments_V12.0.pdf

KRLG said:

Hi Woodbine

Have copied the part which details when when are arrears are not paid to debt management below:-

"When arrears are not offered to Debt Management"
Arrears are paid to the claimant and not offered to Debt Management if any of the following reasons caused all or part of the underpayment:-
 - housing costs
 - late verification of a child
 - late verification of a disabled child
 - late verification of caring costs
 - childcare costs
 - the ending of a sanction
 - the removal of a sanction

The current version says something slightly different but still includes caring costs.

When arrears are not offered to Debt Management

Arrears are paid to the claimant and not offered to Debt Management if any of the following reasons caused all or part of the underpayment: 

 - housing costs

 - late verification of a child

 - late verification of a disabled child

 - late verification of caring costs

 - childcare costs

 - late verification of Limited Capability for Work Related Activity (LCWRA) when LCWRA applies from claim start date

 - Arrears are also not offered to Debt Management when the claimant is paid late because:

 - of a suspension of benefit

 - they were not paid their full award at the end of the assessment period

Underpayments are offered to Debt Management

All arrears are offered to Debt Management except those listed in When arrears are not offered to Debt Management. It is important to ensure that only eligible arrears are offered. (my emphasis)

I agree that this operational guidance does indicate that arrears of carer element should not be used to pay off a debt (although the use of the word 'costs' is slightly confusing). You might still consider that in the long term it may be beneficial to have the debt paid off. If you do want to challenge it post a note in your journal referring to that guidance.

KRLG

Thank you Calcotti

poppy123456

Thanks calcotti.

calcotti said:

(although the use of the word 'costs' is slightly confusing).

Agree with that.

calcotti

poppy123456 said:

Thanks calcotti.

calcotti said:

(although the use of the word 'costs' is slightly confusing).

Agree with that.

..but I can't see what it can mean other than carer element because I can't think of  any way in which DWP pay 'costs' as such.