TCTM02510 - Entitlement: WTC entitlement - Disability element: "Qualifying benefits test”

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 9(2)

A person meets this test if the claimant or in the case of a joint claim one of the claimants satisfies one of the following cases (see notes 1 & 1A):

Reg. 9(2) Case A

On at least one of the preceding 182 days (the “qualifying day”) he or she was in receipt of one or more of the following:

• Higher rate short-term Incapacity Benefit
• Long term Incapacity Benefit
• Severe Disablement Allowance
• Employment and Support Allowance where entitlement to Employment and Support Allowance or Statutory Sick Pay has existed for a period of 28 weeks immediately preceding the qualifying day comprising one continuous period or two or more periods which are linked together.

Reg. 9(3) Case B

On at least one of the preceding 182 days (the “qualifying day”) he or she was in receipt of one or more of the following which includes a Disability Premium or Higher Pensioner Premium because of that person’s own disability:

• Income Support
• Income-Based Jobseeker’s Allowance
• Housing Benefit
• Council Tax Benefit

Reg. 9(4) Case C

On a day for which the maximum rate of tax credit is determined one of the following is payable to them:

• Disability Living Allowance or 
• Attendance Allowance or 
• Mobility Supplement or Constant Attendance Allowance paid with a War Pension or Industrial Injuries Disablement Benefit

Reg. 9(5) Case D

He or she has an invalid carriage or other vehicle provided under the Invalid Vehicle Scheme.

Reg. 9(6) Case E

Where the person has received on account of incapacity for work, for 140 days or more, with the last day of receipt falling within the preceding 56 days, any one or more of the following (see note 3):

• Statutory Sick Pay
• Occupational Sick Pay
• Incapacity Benefit paid at the short-term lower rate
• Income Support paid on the grounds of incapacity for work
• National Insurance credits awarded on the grounds of incapacity for work or

Where the person has received on account of having limited capability for work:

• an Employment and Support Allowance for a period of 140 qualifying days
• National Insurance credits for a period of 20 weeks on account of having limited capability for work, and where the last of those days or weeks fell within the preceding 56 days

and

he or she has a disability which puts them at a disadvantage in getting a job TCTM02530 and is likely to last for at least 6 months or for the rest of their life

and

their gross earnings are at least 20% less than they were before the disability began, with a minimum reduction of £15.00 (gross) per week.

Reg. 9(7) Case F

• On one of the preceding 56 days he or she was engaged in training for work see TCTM02520 

and

for one or more of the 56 days immediately preceding the start of that period of training for work, he or she was receiving one of the following

• Incapacity Benefit at the short-term higher rate
• Incapacity Benefit at the long-term rate
• Severe Disablement Allowance
• Contribution based Employment and Support Allowance for 28 weeks or more (see note 2)
• Statutory Sick Pay followed by contribution based Employment and Support Allowance for a combined period of 28 weeks or more (see note 2)

Reg. 9(8) Case G

Where a person was entitled for at least one day in the preceding 56 days to the disability element of WTC or Disabled Person’s Tax Credit by satisfying cases A,B,E, or F at some earlier time, then he shall be treated as still satisfying those conditions.

For example

A person with a disability that puts them at a disadvantage in getting a job starts working 15 hours a week on 2nd April 2007 and their long term Incapacity Benefit ceased. On 30th September 2007 they started working 18 hours per week and claimed WTC, including the disability element. They satisfied the qualifying benefits test because they had received long term Incapacity Benefit for at least 1 day in the last 182 days prior to the date of claim, meeting case A. As they continued to meet the qualifying conditions throughout 2007/2008 when they claimed for 2008/2009 they met the conditions of case G because they had received the disability element of WTC for at least 1 day in the last 56 days.

Note 1: The person must be entitled to receive the "qualifying benefit" in his or her own right. An appointee receiving any of the benefits listed above on behalf of another person does not satisfy the disability conditions simply by receiving the benefit.

Note 1A: A person may have entitlement under more than 1 case at the same time. For example a person currently qualifying under case C (by receipt) of DLA may also qualify under case G as they satisfied the requirements of case A at an earlier time.

Note 2: The 28 weeks does not need to be a single continuous period. The claimant can add together:

• any periods that they received contribution-based ESA
• any periods that they received SSP, as long as they were no more than eight weeks apart
• any periods that they received SSP with periods that they received contribution-based ESA, as long as they were no more than 12 weeks apart and they met the contribution conditions for contribution-based ESA on the days that they received SSP

Note 3: The 140 days (20 weeks) need not be a single continuous period; it can be made up of any periods of receipt of the benefits or credits which are separated by 8 weeks or less. Any such periods can be linked together to satisfy the 140 days (20 weeks) condition.