Protecting benefit rates at the point of change: IB reassessment
Updated 27 February 2020
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Important information
This information pack is only a guide and does not cover every circumstance. We have done our best to make sure that the information in this pack is correct as of April 2011. It is possible that some of the information is oversimplified, or may become inaccurate over time, for example because of changes to the law.
Introduction 鈥� Protecting benefit rates at the point of change
No one who is reassessed and moves from their existing incapacity benefit to Employment and Support Allowance (ESA) will see a reduction in the level of their benefit entitlement at the point of change.
Where a customer currently receives more on their existing incapacity benefit than the appropriate ESA rate, a 鈥渢ransitional addition鈥� will be awarded on top of their ESA entitlement to ensure that, at the date from which their award converts (鈥渢he effective day鈥�), their overall benefit entitlement is protected. This transitional addition is an amount equivalent to the shortfall between the existing benefit entitlement and the ESA entitlement.
Customers who currently receive less on their existing incapacity benefit than the ESA rate will immediately receive the full ESA rate from the effective day. It follows that these customers will not be entitled to a transitional addition.
Illustrative examples are in Annex A.
The amount of the transitional addition will never increase. It will erode as the rate of ESA entitlement increases, for example, through benefit uprating, and in other prescribed circumstances. This will continue until such a time as the transitional addition is reduced to nil.
The transitional addition will terminate when ESA entitlement itself terminates.
What this means for people in receipt of Housing Benefit/Council Tax Benefit
The Housing Benefit/Council Tax Benefit (HB/CTB) Regulations have been amended to ensure no one sees a reduction in their overall benefit income solely because of the reassessment process. Any disability premiums will be removed from the Housing Benefit/Council Tax Benefit calculation and will be replaced by the work-related activity component (WRAC) or the support component (SC) of ESA, depending on which is awarded.
Where this means Housing Benefit/Council Tax Benefit increases, the higher amount will be awarded immediately. Where this means Housing Benefit/Council Tax Benefit decreases, a transitional addition will be awarded to protect the customer鈥檚 overall income. Illustrative examples are in Annex B.
How the transitional addition is calculated (ESA)
Customer is entitled to a transitional addition
The gross amount of the customer鈥檚 incapacity benefit entitlement in the last benefit week immediately prior to the effective day will remain unchanged following reassessment. This amount is:
- the normal rate payable under specified legislation including age-related additions
- any Adult Dependency Increase (ADI) and/or Child Dependency Increase (CDI) payable
- long-term Incapacity Benefit (IB) for widows and widowers
- transitional award of Incapacity Benefit Long Term (IBLT) 鈥� (former Sickness Benefit recipients)
- transitional award of IBLT (former Invalidity Benefit (IVB) recipients)
The gross amount of ESA to which the customer is entitled from the effective date will be used to calculate any entitlement to a transitional addition.
See example of calculation in Annex A.
Customer declares a change of circumstances on or around the time they are reassessed
If, as a result of a change of circumstances, the customer鈥檚 incapacity benefit increases or decreases, or is due to increase or decrease, in the benefit week of which the effective date is the first day, then, for the purposes of calculating any transitional addition, the amount of the increase or decrease will be reflected in the calculation of the IB/SDA or IS entitlement.
This will mean that the calculation of the transitional addition will be based on a fairer comparison of the entitlements 鈥渂efore鈥� and 鈥渁fter鈥� conversion. (This effect on the transitional addition is for the notional calculation only and will not occur at any other stage of the customers claim).
See example of calculation in Annex A.
颁耻蝉迟辞尘别谤鈥檚 transitional addition calculation takes effect during a period of benefit uprating
Where the final benefit week of ESA falls immediately before an uprating, and the first benefit week of ESA falls in the uprating week itself, then, for the purposes of calculating the transitional addition, the gross amount of benefit payable in the final week of the existing benefit must be adjusted to reflect the amount that would have been due in the first benefit week of ESA, had no reassessment taken place.
See example of calculation in Annex A.
Customer is entitled to transitional additions for both contribution-based Employment and Support Allowance (ESA(C)) and income-based Employment and Support Allowance (ESA(IR))
Customers who are entitled to both ESA(C) and ESA(IR) may be entitled to a transitional addition on top of each element of ESA. Where a customer is entitled both to ESA(C) and to ESA(IR), the two amounts payable (including the transitional additions) will be compared and the higher amount will be paid in the normal way. Where ESA(IR) exceeds the ESA(C) amount, the full amount of ESA(C) and the ESA Transitional Addition (TA)(C) remains taxable.
See example of calculation in Annex A.
Customer is entitled to a 鈥渢ransitional addition only鈥�
Exceptionally, there may be customers whose occupational pension (in ESA(C) cases) and/or income/earnings (in ESA(IR) cases) at the point of conversion, is such that, applying the normal assessment rules, they have no entitlement to either ESA(C) or ESA(IR) , but who are nevertheless entitled, in applying the transitional addition calculation, to a transitional addition of either ESA(C) or ESA(IR) (or both), as appropriate.
An award of 鈥渢ransitional addition only鈥� is a legitimate award of ESA. Where, therefore, it is in payment on an income-related basis, the customer will be entitled to the 鈥減assported鈥� benefits (for example, housing benefit, council tax benefit, free prescriptions etc) and eligible for budgeting loans and community care grants from the social fund, in the normal way.
Any awards of 鈥渢ransitional addition only鈥� will be subject to the normal erosion and termination rules.
See example of calculation in Annex A.
Customer becomes entitled to a 鈥渢ransitional addition only鈥�, following a change of circumstances
In addition to the customers who are entitled to a 鈥渢ransitional addition only鈥� at the point of conversion, there will be some customers who, upon conversion, are entitled both to a standard award of ESA and to a transitional addition, but who, following a change of circumstances 鈥� (most commonly, an increase in income or partner鈥檚 part-time earnings or, in ESA(C) cases, an increase in occupational pension) 鈥� cease to be entitled to the standard award of ESA itself, but nevertheless remain entitled to a transitional addition of either ESA(C) or ESA(IR) (or both), as appropriate.
This is because a change in income/earnings has no impact on the level of any transitional addition 鈥� only on the standard ESA award.
In these circumstances, the customer will continue to be entitled to ESA. Their award will continue on a 鈥渢ransitional addition only鈥� basis.
Erosion of transitional addition: ESA(C) and ESA(IR) 鈥� relevant increase in customer鈥檚 entitlement
The transitional addition is eroded by a figure equivalent to the total amount of relevant increases in the ESA applicable amounts, from the effective date.
A 鈥渞elevant increase鈥� for the purposes of ESA(C) is an increase in the customer鈥檚 applicable amount of ESA:
- on moving to a higher component i.e. the Support Component (SC) instead of the Work Related Activity Component (WRAC)
- as a result of uprating
See example of calculation in Annex A.
A 鈥渞elevant increase鈥� for the purposes of ESA(IR) is an increase in the customer鈥檚 applicable amount, attributable to:
- the entry of a new partner into the assessment
- a move to a higher component i.e. the SC instead of the WRAC
- the award of any new premium
- Pensioner Premium (PP)
- Severe Disability Premium (SDP)
- Enhanced Disability Premium (EDP)
- Carer Premium (CP), or
- uprating
See example of calculation in Annex A.
Erosion of transitional addition: ESA(C) only 鈥� withdrawal of amount equivalent to Adult Dependency Increase
Where, in the final benefit week before conversion, an Adult Dependency Increase (ADI) is in payment to the customer as part of their incapacity benefit award, the amount of the Increase will be included in the calculation of any entitlement that the customer has to a transitional addition on top of their award of ESA(C).
Where this applies, the value of any transitional addition in payment will be reduced by an amount equivalent to the amount of the ADI tha was included in the transitional addition calculation in the circumstances where the partner in respect of whom the ADI was formerly in payment either:
- dies
- permanently separates from the customer
- ceases to be entitled to child benefit, or
- becomes entitled in their own right to a social security benefit at a rate equivalent to, or more than, the amount of the ADI in payment at the point of conversion
Erosion of transitional addition: ESA(C) only 鈥� withdrawal of amount equivalent to Child Dependency Increase
Where, in the final benefit week before conversion, a Child Dependency Increase (CDI) is in payment to the customer as part of their incapacity benefit award, the amount of the Increase will be included in the calculation of any entitlement that the customer has to a transitional addition on top of their award of ESA(C).
Where this applies, the value of any transitional addition in payment will be reduced by an amount equivalent to the amount of the CDI that was included in the transitional addition calculation in the circumstances where child benefit ceases to be payable in respect of the child or children in respect of whom the CDI was formerly in payment.
Termination of transitional addition: special rule 鈥� customer鈥檚 partner starts full-time work
Where the customer ceases to satisfy the conditions of entitlement to ESA(IR), any entitlement to ESA(IR) transitional addition will normally terminate at the same time. However, a special rule applies where the partner of an ESA(IR) customer starts full-time work.
Where a customer鈥檚 entitlement to ESA(IR) and ESA(IR) transitional addition terminates because their partner has found full-time work, then, if the customer re-establishes their entitlement to ESA(IR) within 12 weeks of the termination of the previous award (because the partner has subsequently given up full-time work), they will re-acquire their entitlement to the income-related transitional addition from the outset of the repeat award. This will also occur when the customer remains entitled to ESA(C) during the break in entitlement to ESA(IR).
Where a customer鈥檚 entitlement to ESA(IR) and ESA(IR) transitional addition terminates because their partner has found full-time work, and the customer subsequently re-establishes their entitlement to ESA(IR) but there is a gap of more than 12 weeks between awards, they will not re-acquire any entitlement to their former transitional addition.
See example of calculation in Annex A.
Customer has entitlement to Employment and Support Allowance reinstated following an appeal
Awards of transitional addition will be terminated where a customer loses their entitlement to the ESA following a Work Capability Assessment and, pending the outcome of an appeal, becomes entitled to an award of ESA at a rate equivalent to the rate payable during the assessment phase.
Where a decision ending entitlement to a converted award of ESA is reversed on revision or appeal, entitlement to the transitional addition will be reinstated.
See example of calculation in Annex A.
Customer has the value of the transitional addition reinstated
Where transitional addition is re-instated on a repeat claim, or following an appeal, or where the 鈥渟pecial rule 鈥� around partner鈥檚 full time work applies, the value of the transitional addition must be adjusted , where appropriate, to reflect any reductions in the amount that would have been made had there been no break in the award.
See example of calculation in Annex A.
Annex A 鈥� Examples of transitional addition calculations
Customer is not entitled to a transitional addition
Existing income
| Incapacity Benefit (IB) | 拢91.40 |
Following reassessment the existing award is converted to contributory Employment and Support Allowance and the customer is placed in the support group.
New income
| ESA(C) | 拢96.85 |
The customer receives the ESA award from the effective date of the conversion decision. Because the new rate of benefit is higher no transitional addition is payable.
Customer is entitled to a transitional addition
Existing Income
| IB | 拢91.40 |
| Age addition | 拢15.00 |
| Total | 拢106.40 |
Following reassessment, the customer is placed in the Work Related Activity Group (WRAG).
New Income
| ESA(C) | 拢65.45 |
| Work Related Activity Component (WRAC) | 拢25.95 |
| Total | 拢91.40 |
Comparing the entitlements:
拢106.40 鈥� 拢91.40 = 拢15
This means the customer will receive a transitional addition of 拢15 as part of their ESA(C), to ensure they don鈥檛 see a reduction in the level of benefit entitlement at the point of change.
Customer declares a change of circumstances on or around the time they are reassessed
Example A
A customer declares a change in circumstance after the initial reassessment decision has been made. The transitional addition is therefore being calculated on revision of the initial reassessment decision.
On conversion from IS, the customer is entitled to an award of income-related ESA (ESA(IR)) of 拢142.60. The entitlement includes a transitional addition of 拢13.90. The effective date is 23 November 2011.
The customer鈥檚 partner leaves the household on 25 November 2011. The customer鈥檚 first week of ESA(IR) entitlement is reduced to 拢91.40.
If the final IS award prior to the effective date (拢142.60) was compared with the first award on ESA(IR) of 拢91.40, the customer鈥檚 transitional addition would be 拢52.20. As the partner has now left the household, this is artificially high. So the customer鈥檚 final IS award is notionally adjusted, excluding the partner from the assessment. The IS entitlement notionally reduces to 拢93.45.
If we now compare the ESA(IR) entitlement (拢91.40) with the notional IS entitlement (拢93.45), this results in a re-calculated transitional addition of 拢2.05.
Example B
A customer declares a change in circumstance after the initial reassessment decision. The transitional addition is therefore being calculated on revision of the initial decision.
On conversion from IS, the customer is entitled to an award of income-related ESA (ESA(IR)) of 拢93.45. The entitlement includes a transitional addition of 拢2.05. The effective date is 23 November 2011.
The customer鈥檚 partner joins the household on 25 November 2011. The customer鈥檚 first week of ESA(IR) entitlement is increased to 拢128.70.
If the final IS award prior to the effective date (拢93.45) was compared with the first award of ESA(IR) (拢128.70), the customer鈥檚 transitional addition on conversion would be nil. So the customer鈥檚 final IS award is notionally adjusted, including the partner in the assessment. Their IS entitlement notionally increases to 拢142.60 (which includes the couple rate disability premium).
If we now compare the ESA(IR) entitlement (拢128.70) with the notional IS entitlement (拢142.60), this results in a re-calculated transitional addition of 拢2.05.
颁耻蝉迟辞尘别谤鈥檚 transitional addition calculation takes effect during a period of benefit uprating
A customer is notified that their IS award of 拢91.80 (including the disability premium) is to be converted to ESA (including the work-related activity component). The effective date of reassessment is 14 April 2011, this coincides with uprating week. Had the customer remained on IS, their entitlement in respect of benefit week ending 20 April 2011, following uprating, would have increased to 拢93.45.
For the purposes of the calculation of the transitional addition, the IS amount of 拢93.45 is used rather than the lower amount of 拢91.80. This is compared with the uprated ESA amount (拢92.40).
The customer is entitled to a transitional addition of 拢1.05 (拢93.45 鈥� 拢92.40).
Customer is entitled to transitional additions for both ESA(C) and ESA(IR)
A customer is receiving IB of 拢106.40
Their applicable amount of IS (excluding housing costs) is 拢142.60
The customer鈥檚 total benefit income is 拢142.60
The pre-assessment position is as follows (2010 to 2011 benefit rates):
| Incapacity Benefit entitlement | 拢106.40 | Total 鈥� Includes a higher rate age addition |
| Income Support applicable amount (excluding housing costs) | 拢102.75 | Couple |
| 听 | 拢39.85 | Disability premium |
| 听 | 拢142.60 | Total |
The position, on conversion, is as follows:
Calculation of entitlement to ESA(C)
Standard assessment
| Prescribed amount | 拢91.40 | Total 鈥� Includes WRAC (拢25.95) |
Calculation of entitlement to contributory transitional addition:
IB entitlement (拢106.40) 鈥� ESA entitlement (拢91.40) = 拢15.00
Aggregate entitlement to ESA(C) = 拢106.40 (= 拢91.40 ESA(C) + 拢15.00 transitional addition)
Calculation of entitlement to ESA(IR)
Standard assessment
| Applicable amount | 拢102.75 | Couple |
| 听 | 拢25.95 | WRAC |
| 听 | 拢128.70 | Total |
Calculation of entitlement to income-related transitional addition:
For ESA(IR);
IS entitlement (拢142.60) 鈥� ESA (IR) entitlement (拢128.70) = 拢13.90
Aggregate entitlement to ESA(IR) = 拢128.70 + 拢13.90 (transitional addition) = 拢142.60 鈥� 2 separate calculations NOT an aggregate of IS and IB.
We now compare the customer鈥檚 entitlement to ESA(C) (拢106.40 = 拢91.40 + 拢15.00) with their entitlement to ESA(IR) (拢142.60), and pay the higher amount in the normal way.
So, following reassessment, the customer is entitled (before deductions for earnings or additions for housing costs) to a total of 拢142.60 ESA, comprising 拢106.40 (ESA(C) (including a transitional addition of 拢15.00) and 拢36.20 ESA(IR) (including a transitional addition of 拢13.90). The ESA(C) element of the award is taxable.
Customer is entitled to a transitional addition only
A customer converts from IS to ESA(IR). They are not entitled to IB and therefore not ESA(C). The customer鈥檚 partner has part-time earnings of 拢150
The customer鈥檚 IS applicable amount was 拢102.75 + disability premium of 拢39.85 = 拢142.60.
The customer鈥檚 ESA(IR) applicable amount is 拢102.75 + WRAC of 拢25.95 = 拢128.70
On reassessment, the customer鈥檚 ESA(IR) entitlement is nil, because the partner鈥檚 earnings with a 拢20.00 disregard (拢130.00) exceed the customer鈥檚 applicable amount.
Comparing the ESA(IR) applicable amount ( 拢128.70) with the IS applicable amount (拢142.60), the customer is nevertheless entitled to an income-related 鈥渢ransitional addition only鈥� of 拢13.90.
Erosion of transitional addition: relevant increase in customer鈥檚 entitlement: ESA(C)
On reassessment from IB, the customer is entitled to ESA(C) of 拢91.40 including the WRAC (拢25.95) plus an ESA(C) transitional addition of 拢15.
Following an accident, the customer is unable to walk, and the decision on their ESA award is superseded to include the support component (SC) (拢31.40).
The customer鈥檚 ESA(C) entitlement increases to 拢96.85; and, as a consequence, their transitional addition is reduced by 拢5.45 (being the difference between the SC and the WRAC) to 拢9.55.
The customer鈥檚 overall benefit entitlement remains at 拢106.40.
On a further application of the Work Capability Assessment (WCA), the customer鈥檚 condition has improved and their ESA decision is superseded to award them the WRAC again. The customer鈥檚 ESA(C) entitlement reduces to 拢91.40 again. Their transitional addition remains 拢9.55. Their overall benefit entitlement is reduced to 拢100.95.
Erosion of transitional addition: relevant increase in customer鈥檚 entitlement: ESA(IR)
On conversion from IS, the customer is entitled to an award of ESA(IR) of 拢93.45, which includes a transitional addition of 拢2.05.
The customer is joined by their partner
The customer鈥檚 ESA(IR) entitlement is increased to 拢128.45. As a consequence, their transitional addition is reduced to nil and terminates.
颁耻蝉迟辞尘别谤鈥檚 partner starts full time work
On conversion from IS, the customer is entitled to ESA(IR) plus an income-related transitional addition. Their partner commences full-time employment on 1 August 2011.
As a consequence, the customer loses their entitlement to ESA(IR) and their entitlement to the income-related transitional addition terminates. They continue on ESA as a credits-only case.
The partner gives up their job on 16 September, and the customer reports the change of circumstance and reclaims ESA(IR).
The customer becomes re-entitled to ESA(IR) on 17 September. They satisfy the 鈥渟pecial鈥� 12 week rule, so become re-entitled immediately to the ESA(IR) transitional addition to which they were entitled previously.
Customer has entitlement to ESA reinstated following an appeal
The decision on a customer鈥檚 award of ESA, which includes a transitional addition of 拢15.00, is superseded after they are found not to have limited capability for work following application of the WCA.
Their ESA award is terminated and, pending their appeal, they are awarded ESA at a rate equivalent to the rate payable during the assessment phase.
The appeal to the First-tier Tribunal is successful, and the customer鈥檚 award of main phase ESA, along with the transitional addition of 拢15.00, are reinstated and backdated to the date from which the earlier award of ESA terminated.
Customer has the value of the transitional addition reinstated
A customer is entitled to a reassessed award of ESA(C) which includes a transitional addition of 拢15.00. Their award is terminated when they start full-time work in March 2011.
The customer claims ESA in August 2011 as a Work or Training Beneficiary.
The customer鈥檚 transitional addition is regarded as suspended during the break in entitlement, and is reinstated from the commencement of the new award. The amount of the transitional addition is reduced to take account of the effect of the uprating that took place in April 2011.
As the customer was also receiving Housing Benefit/Council Tax Benefit until they started work, the Local Authority may contact Jobcentre Plus to request the information about the customer鈥檚 ESA entitlement.
Annex B 鈥� Examples of Housing Benefit/Council Tax Benefit
Example 1 鈥� Single customer IB more than contribution-based Employment and Support Allowance (ESA(C))
Income:
| Long term IB | 拢91.40 |
|---|---|
| Age addition | 拢5.80 |
| Total | 拢97.20 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| Disability Premium | 拢28.00 |
| Total | 拢93.45 |
| Less income | 拢97.20 |
| Excess | 拢3.75 |
HB would be reduced by 拢3.75 * 65% = 拢2.44
CTB would be reduced by 拢3.75 * 20% = 拢0.75
Claim reassessed, Work Related Activity Component (WRAC) awarded
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| WRAC | 拢25.95 |
| Transitional Addition | 拢5.80 |
| Total | 拢97.20 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| WRAC | 拢25.95 |
| Total | 拢91.40 |
| Less income | 拢97.20 |
| Excess | 拢5.80 |
Income remains the same but:
HB would be reduced by 拢5.80 * 65% = 拢3.77
CTB would be reduced by 拢5.80 * 20% = 拢1.16
HB falls by 拢1.33
CTB falls by 拢0.41 total reduction 拢1.74.
Adding a transitional addition to the applicable amount of 拢2.05 (the difference between the Disability Premium and the WRAC) would restore the level of HB/CTB
Claim reassessed, Support Component (SC) awarded
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| Transitional Addition | 拢5.80 |
| Total | 拢97.20 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| Total | 拢91.40 |
| Less income | 拢97.20 |
| Excess | 拢5.80 |
Because the customer is entitled to the support component he/she will also be entitled to the Enhanced Disability Premium (EDP) meaning he/she will be better off and no transitional addition would be required.
Example 2 鈥� Single customer IB less than ESA(C) customer has a pension meaning ESA(IR) not payable
Income:
| Long term IB | 拢91.40 |
|---|---|
| Pension | 拢40.00 |
| Total | 拢131.40 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| Disability Premium | 拢28.00 |
| Total | 拢93.45 |
| Less income | 拢131.40 |
| Excess | 拢37.95 |
HB reduced by 拢37.95 * 65% = 拢24.67
CTB reduced by 拢37.95 * 20% = 拢7.59
Claim reassessed, Support Component (SC) awarded (it must be the SC because the total of basic ESA(C) and the Work-Related Activity Component would not exceed the rate of IB)
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| Pension | 拢40.00 |
| Total | 拢136.85 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| EDP | 拢13.65 |
| Total | 拢110.50 |
| Less income | 拢136.85 |
| Excess | 拢26.35 |
HB reduced by 拢26.35 * 65% = 拢17.13
CTB reduced by 拢26.35 * 20% = 拢5.27
Customer is better off. This is because the value of the support component and the enhanced disability premium (EDP) is higher than the disability premium. No transitional addition would be required.
Example 3 鈥� Single customer IB less than ESA(C), customer has the highest rate of Disability Living Allowance (DLA) meaning they are entitled to the Enhanced Disability Premium (EDP). Customer also has a pension meaning ESA(IR) not payable
Income:
| Long term IB | 拢91.40 |
|---|---|
| Pension | 拢40.00 |
| DLA (fully disregarded) | 听 |
| Total | 拢131.40 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| Disability Premium | 拢28.00 |
| EDP | 拢13.65 |
| Total | 拢107.10 |
| Less income | 拢131.40 |
| Excess | 拢24.30 |
HB reduced by 拢24.30 * 65% = 拢15.80
CTB reduced by 拢24.30 * 20% = 拢4.86
Claim reassessed, Support Component (SC) awarded (it must be the SC because the total of basic ESA(C) and the Work-Related Activity Component would not exceed the rate of IB)
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| Pension | 拢40.00 |
| DLA(fully disregarded) | 听 |
| Total | 拢136.85 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| EDP | 拢13.65 |
| Total | 拢110.50 |
| Less income | 拢136.85 |
| Excess | 拢26.35 |
HB reduced by 拢26.35 * 65% = 拢17.13
CTB reduced by 拢26.35 * 20% = 拢5.27
The customer鈥檚 weekly HB would fall by 拢1.33 and the CTB would fall by 拢0.41 鈥� total 拢1.74. This is because, whilst the applicable amount has increased by 拢3.40, the weekly income has increased by 拢5.45. Overall the customer is 拢3.71 (拢5.45 鈥� 拢1.74) a week better off and would not need a transitional addition to protect their level of HB/CTB.
Example 4 鈥� single customer IB less than ESA(C) customer has pension and Disability Living Allowance
Income:
| Short term IB | 拢81.60 |
|---|---|
| Pension | 拢40.00 |
| Total | 拢121.60 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| Disability Premium | 拢28.00 |
| Total | 拢93.45 |
| Less income | 拢121.60 |
| Excess | 拢28.15 |
HB reduced by 拢28.15 * 65% = 拢18.30
CTB reduced by 拢28.15 * 20% = 拢5.63
Total 拢23.93
Claim reassessed, Work-Related Activity Component (WRAC) awarded
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| WRAC | 拢25.95 |
| Pension | 拢40.00 |
| Total | 拢131.40 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| WRAC | 拢25.95 |
| Total | 拢91.40 |
| Less income | 拢131.40 |
| Excess | 拢40.00 |
HB reduced by 拢40 * 65% = 拢26.00
CTB reduced by 拢40 * 20% = 拢8.00
Total 拢34.00
Income increased by 拢9.80 HB/CTB reduced by 拢10.07 therefore customer 27p a week worse off. Adding a transitional addition of 拢2.05 a week to the applicable amount (the difference between the Disability Premium and the WRAC) would prevent the customer from losing out overall.
Claim reassessed, Support Component awarded
Income:
| ESA(C) basic | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| Pension | 拢40.00 |
| Total | 拢136.85 |
HB/CTB:
| Personal Allowance | 拢65.45 |
|---|---|
| SC | 拢31.40 |
| EDP | 拢13.65 |
| Total | 拢110.50 |
| Less income | 拢136.85 |
| Excess | 拢26.35 |
HB reduced by 拢26.35 * 65% = 拢17.13
CTB reduced by 拢26.35 * 20% = 拢5.27
Total 拢22.40
颁耻蝉迟辞尘别谤鈥檚 HB/CTB would increase by 拢1.53. This is because the value of the support component and the enhanced disability premium (EDP) is higher than the disability premium. No transitional addition would be required. Overall, weekly income increases by 拢16.98 (拢15.45 and 拢1.53).