Permanent change becomes a temporary change
Generally, if a permanent change becomes a temporary change, review the rate of the Income Related Rent from the date considered that the assessable income or additional occupant contributions have reduced or increased.
This means, that the date of the change of circumstances would be date the change became a temporary change.
Example
On 9 June Sarah-Louise was granted a benefit as her hours at work were decreasing permanently. Her rate of Income Related Rent was reviewed from this date and decreased accordingly. On 23 June Sarah-Louise phoned and advised that her hours had increased on an on-going basis and the benefit was stopped.
In this situation review the rate of Income Related Rent from the 23 June. Do not backdate the rate or create a debt for the period.
Permanent changes and increases
Where a client advised that their change in circumstances was permanent and their rate of Income Related Rent was increased, and it is subsequently determined that the change was temporary, review the client's rate of Income Related Rent and decrease the rate.
Generally, in this situation, it is not needed to backdate the rate Income Related Rent or issue a refund.
Permanent changes and decreases
Where a client advised that their change in circumstances was permanent and their rate of Income Related Rent was decreased, and it is subsequently determined that the change was temporary, review the client's rate of Income Related Rent and increase the rate.
Generally, no debt would be created unless it is considered that the client intentionally misled MSD by not provided the correct information about their circumstances.
For more information see:
