adoption allowance and income support

[lookingforchocolate]

id be interested to hear if anyone else has heard from income support informing them adoption allowance is classed as income

ive had a very scary letter telling me this, when i phoned them up they were unable to tell me why but i should google the legislation myself!

I thought adoption allowance was supposed to reflect higher costs of adopting children with particular needs? Unless you mean adoption leave pay?

According to DirectGov it is taxable -

"SAP ( Statutory adoption pay) is taxable -

SAP is not a social security benefit but replacement earnings, chargeable to tax as employment income. An employer is still required to pay SAP even if the employment ceases. In exceptional circumstances, the Inland Revenue pays SAP direct to the claimant, but without operating PAYE).

National Insurance contributions are payable on SAP."
Doesn't seem to be any logic to it, as Maternity Allowance is not taxable !

Adoption allowance is not the same thing as adoption pay. Pay is leave pay, like maternity pay. The allowance is more like a DLA type thing for the child (trying to think of a good comparison)

I don't believe it is supposed to be counted - I had a look on AUK for you, and the mods said it wasn't counted - I assume the staff know what is and what isn't income

I'm sure it wasn't counted for my income support either. I mentionned it, but it's an allowance for the child, not money give to parents for adopting

thanks for the responses

income support are insisting it is income even after i read out over the phone their own guide lines from the dwp.gov

i have now printed out and sent then copies of their own policys

-bangs head against wall-