Payment: potential entitlement: potential entitlement (Introduction)
If a customer 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 customer’s entitlement for the whole year
- any entitlement due from the date the customer reported the change will be paid to the customer
- 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 or from the date of the change, if later) will not be paid.
This potential entitlement amount will be retained by the computer until the customer’s award is finalised.
The potential entitlement will be offset 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 offset 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 customer 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 customers 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.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)