February 2013 Universal Credit Losing Protection

01/02/2013
As those of you who have been on our training or regularly read these news items will know, when Universal Credit is launched, some people in receipt of current benefits will be moved over in a process wholly managed by DWP.  For these claimants, transitional protection will be considered and applied where the total household Universal Credit entitlement would otherwise be lower than the total existing award of benefit and tax credit at the point when they move.

But claimants that move to Universal Credit as a result of a change of circumstance which makes them eligible for universal credit will not be entitled to transitional protection.
 
Employment Minister Mark Hoban has now given further information on when transitional protection would be lost.  He said -
‘It is appropriate to end this protection when the circumstances underlying an award are no longer recognisable as those on which the legacy calculation was made. Therefore transitional protection will end altogether if a claimant's circumstances change significantly. The following occurrences are defined as a significant change of circumstances -

A partner leaving or joining the household

A sustained (three-month) earnings drop beneath the level of work that is expected according to their claimant commitment

The universal credit award ending; and/or

One (or both) members of the household stopping work.

Once transitional protection has ended it will not be applied to any future awards’.'

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