HMRC told client income tax rebate was not counted as income for UC

Client is due a tax rebate for last tax year (when he was working full time and not on UC).

HMRC told him recently it does not count for UC and so will not be deducted as earnings.

From what I have read it is treated as earnings if the tax rebate is from a year someone was in paid employment so will be deducted. Seems unfair to me, but that’s how it works is it not?

Many thanks

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