CCM10165 - Penalties and Interest: Date the Claimant Becomes Aware of the Change of Circumstances

Up to 1 November 2006 claimants had to notify certain changes within 3 months of the date the change occurred. From 1 November the time limit was changed and required claimants to tell us about a change within 3 months of the date:

• on which the change of circumstances occurred or
• the claimant first became aware of the change in circumstances if this was later

From 6 April 2007 there was a further change in the time limit and claimants must now tell us of certain changes within 1 month of the date:

• on which the change of circumstances occurs or
• the claimant first becomes aware of the change in circumstances if this is later

In most cases the date of the change will be clear cut and the claimant could not possibly have failed to realise (be aware) there had been a change. For example the claimant stopped using a child care provider or they lost their job or the young person left school.

In some cases the date of the change will be less obvious. If the claimant did not realise the change had taken place until a later date the time limit for notifying the change begins from the date on which they realised the change had happened. We will only consider a penalty if they have not notified the change within one month of this later date.

Example 1

The claimant’s usual working hours dropped to less than 30 hours on 12 November but because the number of hours they work each week varies so much they did not realise until 2 December that there had been a change. They will have 1 month from 2 December to notify the change but their award will be adjusted from 12 November which is the date the change took place. They will have to repay any overpaid credits.

Example 2

Following a disagreement the claimant’s child went to live with his father on 1 August. The claimant thought this was a temporary problem and expected it to last for a few days. On 30 August the claimant realised this was a permanent move. They will have 1 month from 30 August to notify the change but their award will be adjusted from 1 August which is the date the change took place. They will have to repay any overpaid credits.