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What is a Reduced Benefit Decision?

 
 

A Reduced Benefit Decision may be made if, without Good Cause, you:
  • opt-out;
  • have not provided all the information you have, to trace and identify the NRP; or
  • refuse a DNA test.


It means that you could have your benefit reduced by £21.86 a week (rate for 2003/04). The reduction will be for three years and at the end of this time it can be imposed for a further three years.

Who will not have their benefit reduced?
If you or a child living with you receives a disability premium as part of your Income Support or income-based Jobseeker's Allowance (see our Benefits and Tax Credits booklet to find out who qualifies for this) Jobcentre Plus cannot apply the Reduced Benefit Decision.

If the disability premium is awarded after the decision to reduce your benefit has been made, the reduction will continue.

If you or your child are sick or disabled but do not qualify for the premium when the Reduced Benefit Decision is made, you should argue that the welfare of that child will be affected if a penalty is imposed (see What does the 'welfare of the child' mean? under How is the Good Cause decision made?).



What happens to the Reduced Benefit Decision if I decide to 'opt in'?
If at any time you decide you want to apply to the CSA, provide the information requested or take the DNA test, the reduction in your benefit will stop from the beginning of that benefit week (for example, if you are paid in arrears on a Monday, your benefit week starts on the Tuesday before). However, the amounts that have already been deducted will not be repaid to you.



What happens to the Reduced Benefit Decision if I stop claiming IS or JSA for the qualifying child?
If you stop claiming benefit when your benefit is being reduced, this decision will be suspended. Then, if you reclaim within 52 weeks and continue to opt out, the original reduction will continue, unless you provide further information to show Good Cause.

If you reclaim after 52 weeks and are treated as applying to the CSA, you will have to go through the process as before and your benefit may be reduced for a further 3 years.

If you stop claiming for the qualifying child, for example, because they leave school or you are no longer the parent with care, the reduction is suspended from the last day of the benefit week in which this happens (if you are paid in arrears, this is the day you are due your payment). If you start to claim for the child again, the reduction will continue.

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