Potential Entitlement (Introduction)

If a claimant reports a fall in their income, in-year or when they renew their claim, and their entitlement increases, a potential entitlement will be created.

On receipt of an income decrease the computer will re-calculate the claimant’s entitlement for the whole year

• Any entitlement due from the date the claimant reported the change will be paid to the claimant
   
• Payments will be adjusted to reflect their new entitlement
   
• Any entitlement from the day before the reported date (back to the start of the year) will not be paid. This potential entitlement amount will be retained by the computer until the claimant’s award is finalised

The potential entitlement will be off-set against any in-year overpayment that may arise throughout the year.

The amount of potential entitlement remaining to be paid after any in-year recovery amount has been off-set is called potential payment. This figure may reduce throughout the year if overpayments arise. If there is any potential payment remaining it will be released automatically when the claimant finalises their award.

The purpose of retaining potential entitlement is to reduce the number and size of any overpayments. This will also help manage the concerns of claimants regarding the potential reduction of future awards.

Details of any potential entitlement can be viewed in Function MAINTAIN POTENTIAL ENTITLEMENT.

The Function MAINTAIN POTENTIAL ENTITLEMENT also has a release facility that will allow selected High Level Users to release any potential entitlement in year.

Note: (This text has been withheld because of exemptions in the Freedom of Information Act 2000). There is no legal requirement for you to release the potential entitlement