Managed Migration - Worse Off On Universal Credit

energystar7

What's in place to protect those being moved onto universal credit from losing money and being worse off?

Savings aren't taken into account with certain benefits such as tax credits so anyone having to move from tax credits onto universal credit with some form of savings will lose the amount they can claim.

KatrinaWaves

Some things are protected, some things are not. Some people are protected, some are not.

Its an attempt to bring parity. I realise it was an attempt to 'make work pay' but allowing someone with a very high amount of savings to work low hours and claim a lot of tax credits doesnt make a lot of sense to the public purse.

I don't feel someone who has substantial savings should be protected from losing a benefit amount.

calcotti

When people are migrated by DWP from Tax Credits to UC the £16,000 cap on savings will be suspended for a 12 month period. So someone currently getting Tax Credits only may be able to get UC depending on their other circumstances. However after 12 months the cap will apply and the UC claim will end if there are more than £16,000 of savings.
See The Universal Credit (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019, Regulation 51

The transitional capital disregard

51.—(1) A transitional capital disregard is to apply where, on the migration day, the claimant—
(a) is entitled to an award of a tax credit; and
(b) has capital exceeding £16,000.

(2) Where a transitional capital disregard applies, any capital exceeding £16,000 is to be disregarded for the purposes of—
(a) determining whether the financial condition in section 5(1)(a) or 5(2)(a) of the Act (capital limit) is met; and
(b) calculating the amount of an award of universal credit (including the indicative UC amount).

(3) Where a transitional capital disregard has been applied in the calculation of an award of universal credit but, in any assessment period, the claimant no longer has (or joint claimants no longer have) capital exceeding £16,000, the transitional capital disregard is not to apply in any subsequent assessment period.

(4) A transitional capital disregard is not to apply for more than 12 assessment periods.

tomtom256

Are we talking managed or natural migration?

Managed migration will afford various protection but natural migration will not.