Backdating incapacity benefit
This results in missing out on tax credits of up to £1,025 a year, compared to previous years.
Carers are eligible for income support without claiming CA if providing regular and substantial care for a person in receipt of DLA middle/high care or AA.
There is no qualifying benefit rule to allow extended backdating following an award of CA.
Couples where one has recently claimed CA and are waiting to hear should report this as a change of circumstances, and it is also advisable to lodge an appeal against the decision that they are not entitled to WTC, or the childcare element.
Mark Willis explains the latest round of changes to tax credits.1 The government has emphasised the need to simplify the welfare system and introduce a pure incentive to work.
However, current policy is driven by the need to reduce the deficit by cutting welfare expenditure and expenditure on tax credits has been targeted, to both reduce administrative costs and stop paying money to ‘middle income’ families.