Universal Credit claimants could get extra DWP money this autumn

The Department for Work and Pensions has released an update for the autumn to people being switched from so-called legacy benefits such as housing benefit

Thousands of Universal Credit recipients could receive additional funds temporarily this autumn to prevent a sudden drop in income. The extra amounts even surpass what they would usually receive in their monthly payments - and it's all part of the ongoing reform of the benefits system.

Currently, just under seven million people are on Universal Credit. This figure is increasing as claimants are switched from older forms of welfare support.

The so-called legacy benefits include tax credits, Income Support, Housing Benefit, income-based Jobseeker's Allowance and income-related Employment and Support Allowance. As part of the 'managed migration' this autumn, thousands more individuals are being 'transitioned', to use the official terminology.

Households are receiving letters and given a three-month window to apply for Universal Credit before their existing benefits cease. Now the Department for Work and Pensions (DWP) has issued an update outlining the rules for increasing people's Universal Credit during this transition.

It states that an extra amount, known as a transitional element, can be paid under certain conditions and has clarified how this operates. The DWP explains that the transitional element can be added if someone has received a Migration Notice letter and has moved to Universal Credit by the specified deadline date, reports the Mirror.

This element essentially serves as a bridge between what individuals were previously receiving in benefits and what they are due to receive under Universal Credit, according to Birmingham Live. DWP figures indicate that by the end of 2025, when Universal Credit is fully implemented, approximately 2.2 million households are projected to receive transitional protections to prevent their benefits from falling below previous levels.

In addition, it's expected that around 1.2 million families will keep their current benefit amounts. Meanwhile, an estimated 3.8 million could see their payments increase under Universal Credit.

The DWP guidance clarifies: "When a claim is made and verified, the transitional element is calculated using a Universal Credit amount that's based on your known circumstances from the day before your claim. This amount is referred to as the indicative Universal Credit award.

They further elaborated: "At this point, the transitional element is the difference between the indicative Universal Credit award and your previous legacy benefit amount. It aims to protect your benefit entitlement at the point of moving to Universal Credit."

This transitional element relies on information provided by claimants in their Universal Credit applications. It takes into account factors such as employment status, family structure, income, savings and investments, children and childcare costs, potential disabilities or care responsibilities, and details of any benefits already being received.

Officials have described the process for determining Universal Credit eligibility as thorough, involving cross-checks with data from the Department for Work and Pensions (DWP), HM Revenue and Customs (HMRC), and local councils. In instances such as Housing Benefit, after accounting for any benefit cap deductions, DWP might add a transitional element to ease any drop in benefits, ensuring Universal Credit amounts correspond with former benefit levels.

The aim of this transitional protection is to shield those moving to Universal Credit from losing income, keeping their financial support on par with the benefits they previously received. Notably, this protection does not change with the April increase in Universal Credit, which consequently reduces the transitional portion.

The DWP has clarified by stating: "If your circumstances change after you've made your claim, any transitional protection you receive may stop."