This video is one of a series produced by Contact about the benefits system. It looks at the different ways that someone might move onto Universal Credit, a benefit for people of working age on low incomes.
Common reasons families end up on Universal Credit because of a change in circumstance You’re an existing tax credit claimant but separate from your partner, and your couples’ claim for tax credits ends. Unfortunately, you won’t be able to make a new tax credits claim as a single person. You’ll have the option of claiming Universal Credit instead. Similar rules apply if you claim tax credits as a single person and start to live with a new partner. You are a renter who gets Housing Benefit and you move to a new tenancy in a different council area. Your current Housing Benefit claim ends. In this case, you won’t be able to make a new claim for Housing Benefit from your new council. You’ll have to claim Universal Credit towards the rent at your new tenancy instead. The situation is different if you move to a new tenancy in the same council area. That should count as a review of an existing Housing Benefit claim, so you’ll still receive Housing Benefit at your new address. You’ve been getting income-based Job Seeker’s Allowance and start to get the DLA care component for your child at the middle or highest rate. You may wish to stop job seeking and to claim Income Support as a full-time carer instead. In this case, you won’t be able to make a new claim for Income Support. You can claim Universal Credit as a carer instead if you want.
Common reasons families end up on Universal Credit because of a change in circumstance You’re an existing tax credit claimant but separate from your partner, and your couples’ claim for tax credits ends. Unfortunately, you won’t be able to make a new tax credits claim as a single person. You’ll have the option of claiming Universal Credit instead. Similar rules apply if you claim tax credits as a single person and start to live with a new partner. You are a renter who gets Housing Benefit and you move to a new tenancy in a different council area. Your current Housing Benefit claim ends. In this case, you won’t be able to make a new claim for Housing Benefit from your new council. You’ll have to claim Universal Credit towards the rent at your new tenancy instead. The situation is different if you move to a new tenancy in the same council area. That should count as a review of an existing Housing Benefit claim, so you’ll still receive Housing Benefit at your new address. You’ve been getting income-based Job Seeker’s Allowance and start to get the DLA care component for your child at the middle or highest rate. You may wish to stop job seeking and to claim Income Support as a full-time carer instead. In this case, you won’t be able to make a new claim for Income Support. You can claim Universal Credit as a carer instead if you want.
I’ve moved onto Universal Credit via managed migration You might be able to receive top-up payments to ensure you are no worse off under Universal Credit. How does transitional protection work? Transitional protection rules are supposed to ensure that families who would qualify for lower payments under Universal Credit receive top-up payments so that they are no worse off than before. This top-up is known as a transitional element. The DWP compares the amount you receive under legacy benefits (your “total legacy amount”) with an indicative amount it expects you to get under Universal Credit. If your indicative amount is lower than your total legacy amount, you will receive a transitional element to make up the difference. Eligibility In order to be eligible, you need to claim Universal Credit either by: the three-month deadline in your “migration notice”, or the final deadline a month later. If you do not claim by the final deadline, you will not be eligible for transitional protection. This is so even if you claim Universal credit at some later date. For example, Sarah receives Child Tax Credit of £900 per month and Housing Benefit of £1,000 per month. Her total legacy amount is therefore £1,900 per month. Her indicative amount is £1,700 per month. So long as she claims Universal Credit after receiving her migration notice but before her final deadline, she will receive a transitional element of £200 pm. Who won’t be protected? Unfortunately, it appears that not every family who is worse off on Universal Credit will be transitionally protected. In particular, families who have been getting Child Tax Credit payments for a “looked after” disabled child in a residential setting are likely to be significantly worse off when they move onto Universal Credit. This is because they will not receive transitional protection payments to make up for the less generous treatment of their “looked after” child under Universal Credit. If this applies to you and you have received a managed migration notice, get urgent advice about requesting that your managed migration notice be cancelled. There is also a risk that other families who are manage migrated onto Universal Credit won’t be transitionally protected. Seek urgent advice before making any Universal Credit claim if you are getting tax credits for either: A young person who has either already reached the August after their 19th birthday. A young person who is aged 16-19 and in a temporary interruption in their education. A child who is looked after and for whom you receive a kinship carer allowance that is not for accommodation or maintenance. What if my capital is too high? Those on tax credits with capital of more than £16,000 will be eligible for transitional protection. However, this will be only temporary. There is a special “transitional capital disregard”. Under this rule, any capital you have above £16,000 will be ignored, but only for a maximum of 12 months. If you still have more than £16,000 in capital after 12 months, your Universal Credit award will end. Transitional protection payments will not be uprated annually with inflation and can be reduced or even ended altogether as a result of certain changes in circumstances. This means that even those receiving transitional protection will still be worse off over time. I’ve moved onto Universal Credit but NOT via managed migration If you had to claim Universal Credit because you had a change of circumstances, you will not get transitional protection. Similarly, you won’t be eligible for transitional protection if you choose to claim Universal Credit. (For example, because you think you might be better off.) There are only two exceptions to this: 1. Disabled adults already on Universal Credit who previously qualified for severe disability premium as part of their legacy benefit. These adults should receive transitional payments to compensate for the loss of the severe disability premium. 2. Families who had to move onto Universal Credit as a result of a DWP mistake and now receive a lower disabled child addition than under legacy benefits. (An example of such a mistake: DWP stopped your child’s DLA before reinstating it on appeal. The stoppage meant your Income Support claim as a carer ended). In this case, you should either get a transitional payment or let back onto legacy benefits. This is as a result of the Court of Appeal decision in R (TD & Ors) v Secretary of State for Work and Pensions. Phone our free helpline for more details if you think this applies to you. Even if you are someone who receives transitional protection, you are still likely to be worse off over time. Transitional protection payments will not be uprated with inflation. Some changes in circumstances will also reduce the amount of transitional protection you receive.
I’ve moved onto Universal Credit via managed migration You might be able to receive top-up payments to ensure you are no worse off under Universal Credit. How does transitional protection work? Transitional protection rules are supposed to ensure that families who would qualify for lower payments under Universal Credit receive top-up payments so that they are no worse off than before. This top-up is known as a transitional element. The DWP compares the amount you receive under legacy benefits (your “total legacy amount”) with an indicative amount it expects you to get under Universal Credit. If your indicative amount is lower than your total legacy amount, you will receive a transitional element to make up the difference. Eligibility In order to be eligible, you need to claim Universal Credit either by: the three-month deadline in your “migration notice”, or the final deadline a month later. If you do not claim by the final deadline, you will not be eligible for transitional protection. This is so even if you claim Universal credit at some later date. For example, Sarah receives Child Tax Credit of £900 per month and Housing Benefit of £1,000 per month. Her total legacy amount is therefore £1,900 per month. Her indicative amount is £1,700 per month. So long as she claims Universal Credit after receiving her migration notice but before her final deadline, she will receive a transitional element of £200 pm. Who won’t be protected? Unfortunately, it appears that not every family who is worse off on Universal Credit will be transitionally protected. In particular, families who have been getting Child Tax Credit payments for a “looked after” disabled child in a residential setting are likely to be significantly worse off when they move onto Universal Credit. This is because they will not receive transitional protection payments to make up for the less generous treatment of their “looked after” child under Universal Credit. If this applies to you and you have received a managed migration notice, get urgent advice about requesting that your managed migration notice be cancelled. There is also a risk that other families who are manage migrated onto Universal Credit won’t be transitionally protected. Seek urgent advice before making any Universal Credit claim if you are getting tax credits for either: A young person who has either already reached the August after their 19th birthday. A young person who is aged 16-19 and in a temporary interruption in their education. A child who is looked after and for whom you receive a kinship carer allowance that is not for accommodation or maintenance. What if my capital is too high? Those on tax credits with capital of more than £16,000 will be eligible for transitional protection. However, this will be only temporary. There is a special “transitional capital disregard”. Under this rule, any capital you have above £16,000 will be ignored, but only for a maximum of 12 months. If you still have more than £16,000 in capital after 12 months, your Universal Credit award will end. Transitional protection payments will not be uprated annually with inflation and can be reduced or even ended altogether as a result of certain changes in circumstances. This means that even those receiving transitional protection will still be worse off over time.
I’ve moved onto Universal Credit but NOT via managed migration If you had to claim Universal Credit because you had a change of circumstances, you will not get transitional protection. Similarly, you won’t be eligible for transitional protection if you choose to claim Universal Credit. (For example, because you think you might be better off.) There are only two exceptions to this: 1. Disabled adults already on Universal Credit who previously qualified for severe disability premium as part of their legacy benefit. These adults should receive transitional payments to compensate for the loss of the severe disability premium. 2. Families who had to move onto Universal Credit as a result of a DWP mistake and now receive a lower disabled child addition than under legacy benefits. (An example of such a mistake: DWP stopped your child’s DLA before reinstating it on appeal. The stoppage meant your Income Support claim as a carer ended). In this case, you should either get a transitional payment or let back onto legacy benefits. This is as a result of the Court of Appeal decision in R (TD & Ors) v Secretary of State for Work and Pensions. Phone our free helpline for more details if you think this applies to you. Even if you are someone who receives transitional protection, you are still likely to be worse off over time. Transitional protection payments will not be uprated with inflation. Some changes in circumstances will also reduce the amount of transitional protection you receive.
Benefits you might be entitled to Disability Living Allowance (DLA) Personal Independence Payment (PIP) Universal Credit Carer’s Allowance Tax credits Help with Council Tax and rates “Bedroom tax” Other benefits