Moving on to State Pension from Universal Credit. 26 October 2022 at 3:04PM edited 26 October 2022 at 3:54PM in Benefits & tax credits 9 replies 445 views

j56

Hi I am trying to find out how the universal credit runon payment is calculated when you move off universal credit onto state pension, My UC assessment period was 19th to 18th and my state pension retirement date is the 1st.
Universal credit have taken into account as unearned income 18 days of state pension and left a shortfall balance paid for the period 19th to the 31st. Thanks.

whizzywoo

j56 said:

Hi I am trying to find out how the universal credit runon payment is calculated when you move off universal credit onto state pension, My UC assessment period was 19th to 18th and my state pension retirement date is the 1st.
Universal credit have taken into account as unearned income 18 days of state pension and left a shortfall balance paid for the period 19th to the 31st. Thanks.

Your question is really a Benefits question so you will be more likely to get answers on that part of the forum. 

Try posting here
https://forums.moneysavingexpert.com/post/discussion/benefits-tax-credits

EDIT:  OP's post has now been moved to the Benefits Page.

NedS

Are you single or do you have a partner on your UC claim?

Assuming you are single (or have a partner who is also over state pension age), your UC claim will end once you reach state pension age.

UC changed the regulations so that your UC claim does not end immediately on your SPA/birthday, but will run on until the end of your assessment period (AP) - in your case that means your UC claim does not end on the 1st, but will run on until the end of the AP on the 18th.

However, you will have received state pension for the period from 1-18th and this will be deducted in full from any UC that you may be entitled to for the month (any pension income is deducted in full, pound for pound, whilst on UC). If the state pension for that period exceeds any entitlement to UC, then you would receive no UC for the assessment period.

If you have a partner on your claim who is under state pension age then you are referred to as a mixed age couple and your UC claim will remain open (until both of you are over SPA), but your state pension will be deducted in full from any UC entitlement each month.

j56

Thank you Neds for your input, I can confirm I am single and you are right with your assumptions, So to clarify the runon so to speak means UC runs on to the end of the assessment period. In my case it has created this shortfall 19th to 31st, I have lost around £134 or thereabouts which has been backfunded from my state pension which in turn did put me under the minimum of £182.60, I have to pension credit and cannot get a top up to cover this period, So it is just a quirk of the system.
I have since found out that there is a little known rule where you can ask for a pro-rata payment to be made in my case from 19th to 31st to then pay the correct amount, this is according to the advisory service "Housing Systems" so you advice has been really appreciated
Thank you.

NedS

Unfortunately you cannot look at the period 19th to 31st in isolation - it is part of the UC Assessment Period (AP), 19th to 18th, and you have received the normal amount of money during this period (UC + SP combined). You would not be entitled to claim pension credit for this period because you were entitled to UC for the period, and you cannot claim both. Moving forward, if your pension income is below the pension credit threshold of £182.60, then you can claim pension credit from the 19th.

The alternative, under the old rules, would have been to close your claim on the 1st, and you would have received no UC for the whole AP as you are only paid for the AP if your claim is still open and valid on the last day of the AP (18th). So you are better off having received something for that period under the new rules.
I am not aware of any rule which allows for partial payments.

j56

Neds, Thanks for your help with this take care and best wishes.

calcotti

NedS said:). You would not be entitled to claim pension credit for this period because you were entitled to UC for the period, and you cannot claim both.

That isn’t correct. Although in receipt of UC until the end of the AP a claimant is entitled to claim and receive (if applicable) Pension Credit from the day they reach pension age.

Similarly with Housing Benefit if applicable.

See
https://www.legislation.gov.uk/uksi/2020/655/pdfs/uksiem_20200655_en.pdf

7.5 The claimant will have entitlement to Universal Credit for the entire monthly assessment period in which State Pension Credit qualifying age is reached, so in effect there is a run-on of Universal Credit entitlement past that age, helping to smooth the transition between working age and pension age benefits. For a mixed-age couple this will apply when the younger partner reaches State Pension Credit qualifying age.

7.6 Entitlement to State Pension Credit, pension age Housing Benefit and State Pension remain unaffected and can start from the usual date that entitlement begins.

7.7 This final payment of Universal Credit will not be taken into account when calculating awards of State Pension Credit or pension age Housing Benefit. Nor will any payment of State Pension Credit or pension age Housing Benefit be taken into account in the calculation of the final Universal Credit payment.

j56

Hi Calcotti, I am glad you found this, I must admit I have been suspicious because no one at universal credit will discuss the workings or calculations with me, so I requested a Mandatory Consideration the 14th October 2022, to add the legislation is at best confusing and contradicts itself.
In my opinion most claimants are glad to be off UC and are glad for the boost in income the SP brings, so are unlikely to cause a fuss, there could be thousands of people affected its time to talk to my MP.  Thanks for the input.

calcotti

j56 said:

Hi Calcotti, I am glad you found this, I must admit I have been suspicious because no one at universal credit will discuss the workings or calculations with me, so I requested a Mandatory Consideration the 14th October 2022, to add the legislation is at best confusing and contradicts itself.

The UC calculation taking off the State Pension you receive for the overlapping period is correct. Although Pension Credit or HB overlap is ignored there isn’t a disregard for the overlap of State Pension.

NedS

calcotti said:

NedS said:). You would not be entitled to claim pension credit for this period because you were entitled to UC for the period, and you cannot claim both.

That isn’t correct. Although in receipt of UC until the end of the AP a claimant is entitled to claim and receive (if applicable) Pension Credit from the day they reach pension age.

Similarly with Housing Benefit if applicable.

See
https://www.legislation.gov.uk/uksi/2020/655/pdfs/uksiem_20200655_en.pdf

7.5 The claimant will have entitlement to Universal Credit for the entire monthly assessment period in which State Pension Credit qualifying age is reached, so in effect there is a run-on of Universal Credit entitlement past that age, helping to smooth the transition between working age and pension age benefits. For a mixed-age couple this will apply when the younger partner reaches State Pension Credit qualifying age.

7.6 Entitlement to State Pension Credit, pension age Housing Benefit and State Pension remain unaffected and can start from the usual date that entitlement begins.

7.7 This final payment of Universal Credit will not be taken into account when calculating awards of State Pension Credit or pension age Housing Benefit. Nor will any payment of State Pension Credit or pension age Housing Benefit be taken into account in the calculation of the final Universal Credit payment.

Thank you for the correction