DWP could hand thousands of Universal Credit claimants extra money this autumn

The DWP has provided updated guidance on how the transitional element of Universal Credit will work, as thousands of people are set to move onto the benefit this autumn

Thousands of Universal Credit recipients could be in for a temporary boost to their funds to prevent a sudden drop in income this autumn. The additional amounts even exceed what they would typically receive in their monthly payments - all part of the ongoing revamp of the benefits system.

At present, just shy of seven million people are on Universal Credit. This number is on the rise as claimants are transitioned from older forms of welfare support.

These legacy benefits encompass 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'.

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Families are receiving letters and given a three-month window to apply for Universal Credit before their existing benefits stop. The Department for Work and Pensions ( DWP ) has now 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.

Effectively, this measure ensures that individuals switching to Universal Credit bridges the gap between what people were receiving on their old benefits and what they would be due to receive in Universal Credit. According to DWP statistics, by late 2025, as Universal Credit is fully rolled out, around 2.2 million households are expected to receive transitional protections to prevent their benefits from dipping below former levels.

Alongside this, around 1.2 million families are anticipated to maintain their current benefit amounts, and 3.8 million could see increased payments under Universal Credit.

The DWP guidance states: "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 explained: "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 hinges on details provided by claimants in their Universal Credit applications, incorporating factors such as work status, family composition, income, savings and investments, children and childcare costs, potential disabilities or care responsibilities, and specifics of any benefits already being received.

Officials have outlined that the process to determine if someone is eligible for Universal Credit is thorough, involving cross-references with data from the Department for Work and Pensions (DWP), HM Revenue and Customs (HMRC), and local authorities.

This is particularly true for benefits such as Housing Benefit. Here, after any benefit cap deductions are taken into account, DWP may add a transitional element to lessen any potential decrease in benefits, ensuring Universal Credit payments are on par with previous benefit amounts.

The aim of this transitional protection system is to safeguard individuals from losing income as they switch to Universal Credit, keeping their income at a level similar to what they were previously receiving. Notably, this protection is not affected by the April increase in Universal Credit, which will see the transitional element reduced accordingly.

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