DWP confirms who will get 'transitional element' in Universal Credit move

The DWP has released comprehensive guidance on the 'transitional element' of Universal Credit, which will top-up the payments of those who will be worse off under the one-for-all benefit system

Approximately two million Brits are currently claiming one of six legacy benefits from the Department for Work and Pensions. All of these individuals are set to receive a letter as part of the "manage migration" to the all-encompassing Universal Credit (UC) system.

Due to a cost-saving measure, the deadline for this transition has been moved up to the end of 2025. At that point, all legacy claimants will have three months to migrate or risk losing their benefits entirely.

In line with the accelerated rollout of UC in the wake of the pandemic, over a million people have already received a "migration notice" from the DWP. This notice informs them that they have three months to apply, or their benefit payments will cease.

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The six affected legacy benefits include: working tax credit, child tax credit, housing benefit, income support, jobseeker's allowance and income-related employment and support allowance, reports the Manchester Evening News.

Some individuals transitioning to the unified benefit system may see an increase in their monthly payments or find out they qualify for additional financial assistance. However, if your Universal Credit payment is less than your current benefit entitlement, there's no need for concern as the DWP will makeup the difference through the "transitional element."

The Department for Work and Pensions (DWP) has detailed updates about various benefits under the new Labour administration, and among these updates is clarity on who qualifies for an additional payment on top of regular Universal Credit (UC). The 'transitional element' is a top-up given to certain UC claimants, and here's how it is determined:.

How the 'transitional element' is calculated

Each month, Universal Credit payments are tailored individually, taking account of the claimant's finances and personal circumstances. This period of evaluation is called an "assessment period", with adjustments made based on several factors: income levels, housing circumstances, any children they are responsible for, caring duties, and disabilities or health conditions that might impact work capabilities.

To establish the transitional top-up, the DWP compares the claimant's UC amount with data on legacy benefits such as ESA, JSA, and income support. The DWP also consults local authorities to get housing benefit details and cross-references information with HM Revenue and Customs regarding child and working tax credits.

Should an individual's previous legacy benefits exceed what they're entitled to through Universal Credit, the DWP steps in to bridge this gap, ensuring that claimants do not lose out financially during the transition. Nevertheless, claimants who fail to update the DWP accurately about their situation risk missing out on vital financial support.

Which legacy benefit claimants get the 'transitional element'

For instance, even if you don't meet the criteria for Carer's Allowance due to its low weekly earnings threshold, it's still crucial to inform the DWP. You're likely to receive an additional payment through the carer element of Universal Credit (UC).

Similarly, if you're cohabiting with your partner, it's important to let them know as UC is calculated per household and their circumstances could either increase or decrease your benefit entitlement.

However, this also implies that couples living separately won't receive this element, as clarified by the DWP in their updated guidance: "If you and your partner live apart and claim tax credits as a couple, you'll be treated as 2 separate households on Universal Credit. In these circumstances, you and your partner would not be eligible for the transitional element.Parents of adults aged under 19 who are living at home while enrolled in full-time higher education can also receive a ".

Parents with children under 19 living at home while studying full-time higher education may also be entitled to a "child element", although this might not apply to everyone. The department stated: "Even if you currently receive a child element on your existing benefits or tax credits, the transitional element will be calculated without it if your child is not eligible under Universal Credit rules."

Those receiving the severe disability premium will also have their monthly payments safeguarded by the transitional element, which will automatically be included as part of your Universal Credit transition.

Due to the way Universal Credit is calculated, it's essential to inform the DWP if anyone in your household receives contribution-based or New Style-ESA with limited capability for work or work-related activity, as this will be factored into your top-up. Those with limited work capacity will receive the difference between their old and new payments.

For individuals transitioning from tax credits, the DWP has provided guidance on how entitlement is calculated during the transition.

The DWP explains: "HMRC calculate tax credits using your annual income. They do not use actual current year income because this is not known in advance."

Therefore, your indicative Universal Credit award, including the transitional element calculation, will either be based on your:

• income from the previous year
• estimated income: what you told HMRC your current year income is likely to be

You can find out more about transitional protection in the Universal Credit migration here.