Increase Or Decrease In Hours (Info)

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Note: Before making any changes, you must follow the guidance in Establish If A Change Can Be Made
 

The claimant may inform you of an increase, or decrease, in their hours when there has been

• No change in either the number of jobs they have or, the details of the main job have not changed

And

• They are still in the same job

This applies for employed and self-employed where all changes have occurred before today’s date.

Note: It is important to record every increase or decrease in hours as any change may affect the claimant’s eligibility to WTC.

If WTC entitlement ends due to employment changes, for example total hours worked have dropped below 16 or employment ends, the claimant may be entitled to IS, income based JSA or income-related Employment and Support Allowance ( ESA). They will continue to receive WTC for 4 weeks starting from the day after entitlement ended. The claimant will receive a letter explaining this

Note: Claimants serving a prison sentence are not treated as being in remunerative work and so this will not apply to them

This guidance covers the backdating process for when you are notified of the change

• Within 3 months of the claimant increasing or decreasing their hours

Or

• If you are notified over 3 months after the claimant increased or decreased their hours

By following the relevant steps, you will ensure that the claimant receives the correct payment

Any change of circumstances, you make must be applied, one at a time. Where the claimant has informed you of several changes, that have occurred at different times, apply the changes in sequence, starting with the oldest change first.

Consider whether the change to the weekly hours will increase or decrease the maximum tax credits award. That is, before any income reduction is applied.

An increase occurs when the claimant is

• Responsible for at least one child and the total weekly hours increases from below 16 hours to 16 hours or more. There is no other job that qualifies the family for WTC

• Responsible for at least one child and the total weekly hours for both claimants increased from below 30 hours to 30 hours or more

Or

• Not responsible for any children and the total weekly hours a claimant works increases from below 30 hours to 30 hours or more

A decrease occurs when the claimant is

• Responsible for at least one child and the total weekly hours decreases to below 16 hours and there is no other job that qualifies the family for WTC
   

• Responsible for at least one child and the total weekly hours for both claimants decreases from 30 hours or more to below 30 hours
   

• Not responsible for any children and the total weekly hours a claimant works decreases from 30 hours or more to less than 30 hours