Reviews of earnings

Some clients will periodically have their earnings checked to make sure that they remain entitled to Carer Support Payment on an ongoing basis. This is because compared to other eligibility criteria, earnings are more likely to change in some cases. Reviewing earnings reduces the risk of overpayments.

All clients will still have a duty to report a change in their circumstances ‘as soon as reasonably practicable.’ See more information on change of circumstances at Change of circumstances | Social Security Scotland

There will either be planned or unplanned reviews of earnings in the following circumstances:

Planned reviews of earnings

Where a planned review of a client’s earnings is needed following a Carer Support Payment award, the determination notice we send to them about their Carer Support Payment award must include the date of their review.

Operational guidance on planned earnings reviews can be found at About planned earnings reviews for Carer Support Payment | Social Security Scotland.

Reviews due to additional earnings or deductions 

If employed earners either:

• have told us on application or following a change of circumstance that they get additional earnings other than wages or salary, or 
• have earnings which would be over the threshold without deductions

we should review their earnings every 26 weeks for the first year of their entitlement. This would start with the date 26 weeks after they start getting Carer Support Payment or following the effective date of the change of circumstance.

If the client stopped getting additional earnings other than wages and salary, they would not need to have planned reviews due to additional earnings anymore.

If after a year of entitlement or a year after the effective date of change, the client’s weekly net earnings were consistently below the limit, reviews of earnings would not need to continue.

Clients whose earnings need to be reviewed should be contacted for further information about their additional earnings.

Reviews due to self-employment

Self-employed clients who have at least 12 months of evidence for their income and expenditure will have their earnings reviewed annually.

Self-employed clients with less than 12 months of evidence for their income and expenditure (for example where they have been self-employed for less than 12 months, where there has been a change in their normal pattern of trading, or where they have limited information) would need to have a planned review before 12 months.

In general, where there is less than 12 months of evidence, we would set the review date at 26 weeks, and then a further review at 26 weeks If the client has been consistently earning below the limit in that year, subsequent reviews can be set every 12 months.

If the client has a new business, change of circumstances of limited supporting information
 

If:

• the business is new
• there has been a change affecting how much the client normally earns
• supporting information available is very limited or shows very variable earnings

reviews can be set sooner than 26 weeks of entitlement e.g. 13 weeks from entitlement start instead. Decision makers can set an earnings review as soon as 28 days from entitlement start.

This is because it may be difficult to work out what the client will normally earn so an earlier review could help prevent overpayment. After the initial review, decision makers can decide what the period should be for the next review. This may be 26 weeks if decision makers consider that there is enough information or more consistent earnings.

If the client consistently has earnings under the limit in the first year of entitlement, their earnings can then be reviewed annually.  

Unplanned reviews of earnings

Operational guidance on unplanned earnings reviews can be found at About unplanned earnings reviews for Carer Support Payment | Social Security Scotland.

Reviews for employed clients

If an employed client’s gross earnings are over the limit, client advisors need to contact the client to confirm whether they have any deductions or disregarded earnings that could be taken off their gross earnings following operational guidance. This is because HMRC data would not show all details of deductions or possible disregarded earnings

If the carer had any deductions or disregarded earnings, they would be asked to provide supporting information to verify the deduction or disregard. This could include:

• a recent payslip that shows payments for income tax, National Insurance, contributions to a workplace pension
• a recent statement for a private pension
• a recent receipt or invoice for childcare or replacement care for the cared for person due to the client’s work
• receipts for any work-related expenses the carer hasn’t been paid back for

If the carer either:

• did not have any deductions or disregarded earnings 
• had net weekly earnings that were still over the limit

their award would be stopped following effective date of change rules set out at Change of circumstances effective date | Social Security Scotland.

Their award could later be reinstated through a determination without application under temporary stops in entitlement rules if it was confirmed within 26 weeks that their weekly earnings had returned to below the limit, and they met all eligibility criteria for Carer Support Payment again. If the client did not meet the criteria again within 26 weeks but became entitled again after this, they would need to make a new application. Further guidance on temporary stops in entitlement can be found at Temporary stops in entitlement to Carer Support Payment | Social Security Scotland.

For more details see Carer Support Payment regulations, Regulation 23

Reviews for self-employed clients

A self-employed client may report a change to their circumstances that means they are earning more than usual. This can include circumstances such as:

• new contracts or customers that increase demand for work
• business expansion that brings in more work
• an unexpected increase in demand for work

Earnings should be reviewed to check that the client is still earning under the limit on average.

Supporting information should be requested to evidence the client’s earnings since the change occurred.

If average earnings over this period continue to be under the limit, the client can continue to be entitled and earnings should be reviewed again in 26 weeks. The client would still have a duty to report other changes of circumstances as soon as reasonably practicable after they occur.

If average and actual earnings are over the limit, the client’s payments should be stopped as they would no longer be entitled. Effective dates rules should be followed in deciding when payments should stop from.