UC and working tax credit arrears

gemmaLuke

Hi I hope someone can help.. Today I received a note in my journal that I have got the limited capability element due to having heart failure anyway .. but I also found out that I was paying money back to working tax credit… I owe around 7 k but was split between me and the ex .we’ve both been paying the debt back.. ex paying his weekly mine monthly .. They said that any money owed from august 2022  would be back payed and I  should see a note in my journal in around 7 days .. what I want to know is will the arrears be paid off against that also  UC over paid me 2019 I owe 1000 also paying that off aswell  that was there fault not mine . Please any advice given would be appreciated 

poppy123456

You will only receive extra money if you were found to have Limited Capability for Work Related Activity (LCWRA) and yes, if any money is owed to you they can use this to pay the debt you owe.

gemmaLuke

Thanks poppy I received the letter today in my journal saying they have awarded me the limited capability element I had a massive heart attack  last year and now I have heart failure and edeama all sorts now I was fit as a fiddle worked my entire life pretty much I’m only 40 and feel 90 

poppy123456

gemmaLuke said:

Thanks poppy I received the letter today in my journal saying they have awarded me the limited capability element

Please have a closer look to see exactly what it says on that decision letter. If it says "limited capability for work" there's no extra money.

If it says Limited Capability For Work Related Activity then you'll receive extra money from the 4th month after you reported your health condition.

Sue_Alumni

Hi and welcome to the online community.  Could you share with me the date when you made your UC claim and clarify  what you mean when you say "any money owed from August 2022 would be back paid".
When you claimed UC your tax credit debt would have been transferred to the DWP for them to recover the debt and any repayment plan with HMRC (if you had one) would have stopped.
If you are overpaid UC the DWP can recover the money even if the overpayment was caused by their error.  However, you can challenge the amount of the overpayment but you cannot challenge a decision to recover an overpayment.  
The usual way of repaying an overpayment is from your ongoing award of UC The maximum amount that can be deducted from your UC for an overpayment is 15% your standard allowance , ie £50.24 per month  (assuming you are single and over 25)  However, it can be more if you have earnings. The standard allowance is the basic amount of UC you are entitled to and does not include extra elements such as housing costs and, in your case LCWRA element.  If you only have LCW whilst this will be relevant to your work commitment you will not normally receive extra money in addition to your personal allowance. 
I would suggest you do the following:-
1. Check the DWP letter notifying you of the overpayment and check that you agree with their figures and that there was an overpayment. If you don't agree with the amounts then ask for them to reconsider the amount of the overpayment again 
2. If you accept the amount of the overpayment but paying it back will cause you hardship or will have a detrimental affect on your health and welfare and/or that of your family, ask the DWP to exercise its discretion to write off the overpayment. If the overpayment was the DWP's fault and not yours you should explain that too.  If the overpayment is causing you increased anxiety and making your medical conditions worse too you should also mention that.   The DWP should consider your request and if they refuse to write off the overpayment they may agree to a lower repayment rate. 
Good luck !

gemmaLuke

Sorry sue august 2021 

poppy123456

The LCWRA is payable from either December or January, depending on what date exactly you reported your health condition and the dates of your assessment periods. 

gemmaLuke

I first put the sick note in august when I had the heart attack 

poppy123456

That doesn’t help me to tell you exactly when the LCWRA element is paid from exactly. 

Based on limited information then it will be as previously advised 

poppy123456 said:

The LCWRA is payable from either December or January, depending on what date exactly you reported your health condition and the dates of your assessment periods. 

gemmaLuke

My first sick note went in on the 2nd august poppy 

calcotti

gemmaLuke said:

My first sick note went in on the 2nd august poppy 

Which doesn't help because you still haven't said what the dates of your UC assessment periods are. What date do you get paid on?

gemmaLuke

Oh sorry 3rd to the 2nd of every month paid on the 9th 

poppy123456

That means your waiting period will be Aug/Sept, Sept/Oct, Oct/Nov.. LCWRA starts from AP 3rd Nov to 2nd December, first payment 9th Decemeber 2021.

As advised previously, they can take the money you owe from your backdated money.

Sue_Alumni

Hi again,
1. I assumed you had made a typo and it was 2021 not 2022 ! No worries. You should carefully check the overpayment amount referred to by the DWP and that all the details are correct and that it takes account all the payments you have made to HMRC.  As detailed in point 1 of my post of 20.6.2022 you should ask the DWP to reconsider its decision regarding the overpayment amount if you think its been calculated incorrectly.  If necessary upload the notice of overpayment from HMRC to your online journal. 
2.If you have problems paying the overpayment and can demonstrate that repaying it would cause you real hardship, consider the matters discussed in point 2 of my post. 
3. You have been found to have LCWRA as detailed above and deductions are taken from your standard allowance.  The DWP benefit recovery staff guide chapter 5 para 5.48 states that where a debtor with an outstanding overpayment is due arrears of benefit, these can be withheld in full to recover the overpayment. However, this is a matter of discretion, and it is still open to you to ask the DWP to exercise its discretion not to take all of the arrears of benefit.  As discussed previously you will need to show strong and compelling reasons.  

gemmaLuke

Thank you for everybody time writing back I still haven’t heard anything regarding the back pay as of yet and I’m assuming it will take a couple more weeks to hear anything back .. no news is good news 

poppy123456

It often takes a few weeks for back pay. First they have to recalculate your past statements so they can work out exactly how much is owed. Once this is done you’ll receive a letter on your journal. 

As you have a debt with tax credits then before they pay you what’s owed it maybe sent to debt management to decide whether they will use the money to pay of your debt or whether it will be paid to you.