Treating periodic compensation payments as a direct deduction or income 108-03190040

In Customer First workspace, search for the Compensation Management Summary.

Go to the Claim Summary and select the relevant Claim ID.

Under Incident Details, ensure the correct dates are recorded for:

• Incident Date
• Loss of Earnings Start Date (If applicable)

See Resources for examples of the date of the compensable event.

Check if the compensation recipient was receiving a compensation affected payment (CAP) at the date of the accident. For a list of CAPs, see Compensation affected payments (CAP)

Check the following screens:

• Allowance/Benefit History (ABH)
• PPP Component History (PGCH)
• Pensions Status History (PNSH) screens
• Parenting Payment General Information (PGGI)
• Payment Summary (PS)

Note: some payments can only be found in Customer First Workspace > Payment List

Where the compensation recipient:

• was qualified for and in receipt of a CAP on the date of the compensable event, go to Step 3
• is receiving a saved compensation affected payment (SCAP), go to Step 4
• is qualified for a CAP and not receiving a CAP on the date of the compensable event, go to Step 5
• was not receiving a CAP on the date of the compensable event but subsequently claims a CAP, go to Step 6
• has not received or claimed a CAP since the date of the compensable event, go to Step 7
• has claimed a CAP since the date of the compensable event which has been rejected for reasons other than compensation, go to Step 8

When recording periodic compensation on the Periodic Payment Details screen, update the following sections as follows:

• Incident After CAP Grant – Yes

If partnered, record the supplementary fields on the Periodic Payment Details screen as follows:

• Recipient Assessment Benefit/Pension Rate – to reflect the customer's current payment stream
• CAP Qualified – Yes

This may affect their partner under the relevant ordinary income test. See Coding and raising debts for periodic compensation payments.

If the customer is receiving:

• a pension, see Pensions income and assets tests
• an allowance, see Allowance income and assets tests
• Special Benefit (SpB), see Special Benefit (SpB) income and assets test

Procedure ends here.

The periodic compensation is:

• treated as ordinary income of the customer
• subject to the normal income and assets that apply to their SCAP

This will affect the partner's CAP/SCAP only under the pensions combined income test, or for allowances, if the total income of the compensation recipient results in excess partner income.

Periodic compensation is disregarded for the partner if:

• the compensation recipient is in receipt of CAP and
• the partner is in receipt of a SCAP

See Effects of periodic compensation in partner’s income support payments.

If the customer is receiving:

• a pension, see Pensions income and assets tests
• an allowance, see Allowance income and assets test
• Special Benefit (SpB), see Special Benefit (SpB) income and assets test

Procedure ends here.

A customer is not in receipt of a CAP if a payment is:

• suspended, or
• paid a nil rate

Treat the periodic compensation as direct deductions for the compensation recipient.

When recording periodic compensation on the Periodic Payment Details screen, update the following sections as follows:

• Incident After CAP Grant – No

If partnered, record the supplementary fields on the Periodic Payment Details screen as follows:

• Recipient Assessment Benefit/Pension Rate – to reflect the compensation recipient's current payment stream
• CAP Qualified – Yes

Any excess compensation once the compensation recipient’s entitlement has been reduced to NIL may affect their partner’s entitlement. This excess will be treated as part of their partner's ordinary income.

See Coding and raising debts for periodic compensation payments.

Procedure ends here.

Treat the periodic compensation as a direct deduction for the customer.

From the date the customer claims a CAP record periodic compensation on the Periodic Payment Details screen, update the following sections as follows:

• Incident After CAP Grant – No

If partnered, record the supplementary fields on the Periodic Payment Details screen as follows:

• Recipient Assessment Benefit/Pension Rate – to reflect the compensation recipient's current payment stream
• CAP Qualified – Yes

Any excess compensation once the compensation recipient’s entitlement has been reduced to NIL may affect their partner’s entitlement. This excess will be treated as part of their partner's ordinary income.

See, Coding and raising debts for periodic compensation payments.

Procedure ends here.

This information should only be recorded if the compensation recipient is partnered to a customer in receipt of or is claiming a CAP.

A determination cannot be made as to the compensation recipient’s qualification at the date of compensable event. A beneficial approach is given to the partner in this case.

When recording periodic compensation on the Periodic Payment Details screen update the following sections as follows:

• Incident After CAP Grant – No
• Recipient Assessment Benefit/Pension Rate – to reflect payment stream relevant for the compensation recipient's partner
• CAP Qualified – No

SeeCoding and raising debts for periodic compensation payments.

Procedure ends here.

Only record this information if the compensation recipient is partnered to a customer in receipt of or is claiming a CAP.

If a CAP claim has been rejected for reasons other than compensation, the compensation recipient is treated as not qualified for a CAP. A beneficial approach is given to the partner in this case.

Record periodic compensation on the Periodic Payment Details screen, update the following sections:

• Incident After CAP Grant – No
• Recipient Assessment Benefit/Pension Rate – to reflect payment stream relevant for the compensation recipient's partner
• CAP Qualified – No

See Coding and raising debts for periodic compensation payments for more information.

Procedure ends here.