Appendix O:
Extended payments

Background

Regulations 2(1), 62(A), 69(8), 76(4) and Schedule 5A of the Housing Benefit (General) Regulations as amended and regulations 2(1), 53A, 66(4) and Schedule 5A of the Council Tax Benefit (General) Regulations 1992, as amended, provide for EPs of HB and CTB to be made.

Findings

The HB and CTB EP scheme was introduced on 1 April 1996 as part of a package of measures designed to encourage the long-term unemployed to return to work. The aim of the scheme is to help with housing and CT costs during the transition from IS or Income-Based Jobseeker’s Allowance (JSA(IB)) to the receipt of first wages. LAs must have systems in place to enable EPs to be processed urgently.

To be eligible for an EP, a claimant must satisfy all the following conditions:

• IS or JSA(IB) must have lasted for a continuous period of 26 weeks because the claimant was:

• actively seeking work
• receiving IS or JSA(IB) as a lone parent or carer
• on a government training course

• IS or JSA(IB) has ceased because the claimant (or any partner) has either:

• started work
• increased their hours worked
• increased their wages

• the new job, hours or earnings are expected to last at least 5 weeks
• there is a continuing liability for rent and/or CT for the period of EP
• the claimant is under 60 years of age when IS ceases or, in JSA(IB) cases, under 60 for a woman or under 65 for a man
• the claim is made in the method and time prescribed.

A claim for EP must be made on a form NHB1-EP or equivalent and completed forms should be returned to a jobcentre, BA office or LA office within 8 days of the date IS or JSA(IB) stopped. The claim must be made by the person in receipt of IS or JSA(IB). BA must certify claims received to show that the claimant has satisfied the 26-week qualifying condition before the claim is forwarded to the LA for processing.

LAs should have procedures in place to identify claims for EPs and any subsequent in-work claims for HB or CTB and should fast track them as appropriate. There are subsidy incentives and penalties to encourage LAs to deal with in-work claims quickly. If the claimant has already made a claim for an EP, an LA may earn an additional £10 subsidy if it determines an in-work claim:

• within 14 days of the date the in-work claim is made
• within 14 days of the date the claim for EP is made
• within 7 days of the date when all the relevant information is received

whichever of these is the latest. In addition the LA must determine the in-work claim during the 4-week EP period.

The timing for making a claim for EP is crucial, as any claim received after the 8-day period is not eligible for payment and cannot be backdated. It is essential that the receiving office date stamps the claim form to ensure that the 8-day period can be correctly assessed. Claimants who believe either BA or ES staff have given them wrong advice can request compensation payments from BA. LAs were advised of the compensation scheme in Circular HB/CTB A4/97 and are expected to advise claimants if appropriate.

Thanet’s approach to EPs

Our inspection found that Thanet has some good practices for processing EPs.

Thanet has a dedicated team that takes responsibility for assessing EPs. Membership of this team rotates on a day-to-day basis. Staff are aware of the qualifying conditions for EPs and compensation arrangements. Priority is given to NHB1-EP forms when received and they are immediately forwarded to the section.

Thanet has produced a leaflet to explain EPs. The leaflet includes information on claiming compensation payments from BA for misleading advice. Thanet uses standard letters that include information on the claimant’s right to review if EPs are refused.

The number of claims for EPs in 1997/98 recorded by the LA was 1,530, of which 1,154 were accepted and 376 were refused. The number of fast track in-work claims was 609, of which 424 were accepted and 185 were refused. (Source: Thanet District Council).

We selected 20 cases for examination and our findings are shown in the following table.

Source: BFI analysis

All the claims were made using the correct claim form and BA had certified them. Claims had not been made within the 8-day period in 2 cases and had been refused accordingly.

Source: BFI analysis

From the selected cases, 3 claims were processed incorrectly. The reasons were:

• one claim had been certified by BA that the 26-week rule had not been met
• one claimant had stated that the work was to last less than 5 weeks
• one claim had been made by the partner of the person who was in receipt of JSA(IB).

The general turnaround time from ES and BA to Thanet is 2 days. We found that 2 of the sample claims had not been date stamped by ES or BA. In these instances, provided they were date stamped by the LA within the 8 days, no issue of delay would arise. However, the failure to date stamp the claim forms by BA or ES could have been an important issue and could have resulted in BA having to make compensation payments.

From the sample, 9 of the claims for EP also had successful in-work claims fast tracked. Thanet qualified for the £10 additional subsidy in all 9 cases.

Conclusions

Thanet processes claims for EPs and fast track in-work claims promptly. The accuracy of processing could be improved, although the errors we found do not appear to be due to lack of knowledge about entitlement conditions.

Review rights are covered satisfactorily in the relevant notices of determination Thanet issues.