CCM6890 - Particular Aspects: Estimated Income - Using an estimate higher than PY Figure

If you consider that the income over the year is likely to exceed the PY figure in the claim, you should suggest to the claimant(s) that they may wish to have their award recalculated on the basis of this figure, in order to avoid building up a debt. The £25,000 disregard makes it less likely that they will have an overpayment for that year’s award but the recalculation avoids their run-on payments being overpaid. You should explain to the claimant that the only way to avoid building up a debt through high run-on payments is by altering the CY figure.

You should not normally amend the award using the higher CY estimate unless the claimant asks you to do so. Claimants are not obliged to notify any changes in income, either downwards or upwards, so if they do not want their award recalculated to reflect a higher figure of estimated CY income, you should not normally insist.

If you have any doubts about the appropriate figure to use, you should consult your manager.