Alex is entitled to income-related Employment and Support Allowance. He has a mortgage protection policy that pays £50 a week. the terms of the mortgage protection policy payments must be made direct to the building society. The money is used to meet Alex’s mortgage repayments. Alex’s applicable amount includes £25 a week for mortgage interest. The decision maker treats Alex as having income of £25 a week. The balance of £25 is ignored. Payments made direct to a third party when the claimant could receive the income direct 51143 Where a claimant received housing costs within their award as in DMG 51141 2.2 then the decision maker should treat any payments made direct to a third party as the claimant's income from the date the claimant could expect to get the income1 if 1. an application was made and 2. the claimant could successfully apply to receive the income direct. This notional income should be treated as if it is actually received by the claimant2. 1 ESA Regs (NI), reg 106(2); 2 reg 109(1) How should the decision maker decide when the claimant could expect to get the income 51144 The decision maker should calculate the date the claimant could expect to receive the income by 1. assuming that an application was made on the date the decision maker first becomes aware of the possible income and 2. adding the estimated time it would take for an application to be processed. Payments made direct to the claimant If the claimant 1. receives payments or 2. is treated as receiving payments for housing costs direct the decision maker should decide if the income comes from a mortgage protection policy. 51146 [See DMG Memo Vols 4/143, 5/110, 6/93, 8/91 & 9/42] Where a payment is made from a mortgage protection policy the decision maker must decide how much of the payment is for a qualifying loan. The decision maker must then decide under what
Alex is entitled to income-related Employment and Support Allowance. He has a mortgage protection policy that pays £50 a week. the terms of the mortgage protection policy payments must be made direct to the building society. The money is used to meet Alex’s mortgage repayments. Alex’s applicable amount includes £25 a week for mortgage interest. The decision maker treats Alex as having income of £25 a week. The balance of £25 is ignored. Payments made direct to a third party when the claimant could receive the income direct 51143 Where a claimant received housing costs within their award as in DMG 51141 2.2 then the decision maker should treat any payments made direct to a third party as the claimant's income from the date the claimant could expect to get the income1 if 1. an application was made and 2. the claimant could successfully apply to receive the income direct. This notional income should be treated as if it is actually received by the claimant2. 1 ESA Regs (NI), reg 106(2); 2 reg 109(1) How should the decision maker decide when the claimant could expect to get the income 51144 The decision maker should calculate the date the claimant could expect to receive the income by 1. assuming that an application was made on the date the decision maker first becomes aware of the possible income and 2. adding the estimated time it would take for an application to be processed. Payments made direct to the claimant If the claimant 1. receives payments or 2. is treated as receiving payments for housing costs direct the decision maker should decide if the income comes from a mortgage protection policy. 51146 [See DMG Memo Vols 4/143, 5/110, 6/93, 8/91 & 9/42] Where a payment is made from a mortgage protection policy the decision maker must decide how much of the payment is for a qualifying loan. The decision maker must then decide under what
dmg-vol9-chapter51.DOCX