Managed Migration - Transitional Protection

the_pink_panther_2

I'm on WTC and CTC and expecting a migration notice in the near future.  The government have just approved a pay rise effective from Sept but it's always backdated as it's never voted through in parliament by September, so I'm expecting a delay in this till about Nov, which gives a payment which includes the backdated payments from Sept, which would make my pay look a lot bigger in that month than it really is.  I'm worried as it may really mess up my transitional protection (which I would be better off with, I've checked  that part) by looking like my salary is much bigger than it really is at that point in time, but it depends on how the protection is calculated and I can't find any detailed guidance, just things which look generic.  If it's calculated by looking at my pay for that month, if I were to be moved across in the same month as that back payment it'll look like my pay is much larger than it is as really it's covering 2-3 months missed pay increases, or is it that it takes it as an average monthly pay over that tax year, or something else?  Am really worried I'll lose the protection pretty much immediately due to the late payment of the salary increase. 

poppy12345

UC entitlement is based on earnings received during your assessment period. The more you earn the less UC you'll be entitled to. The TP is there so that you won't be any worse off when you claim. If your UC entitlement is higher than your Tax credits then there will be no TP.

peteuk

Pay rise in Sept/Oct/Nov will affect your WTC/CTC because it will increase your annual income.  The back pay wont effect it because had amount is the same as if you payrise was made in April.   

You will be protected during the transition and then your monthly pay will be taken into account for UC.  So if in the future,  you do get a zero payment for one month (due to back pay) then it wont cancel your UC claim, just means for the month youve got the extra pay you wont get UC.  The following month you will be assessed in your new wage.
 

poppy12345

peteuk said:

Pay rise in Sept/Oct/Nov will affect your WTC/CTC because it will increase your annual income.  The back pay wont effect it because had amount is the same as if you payrise was made in April.   

Tax credits is based on the previous years income. There's a £2,500 disregard so unless income has changed by at least this amount there will be no change.

the_pink_panther_2

peteuk said:

Pay rise in Sept/Oct/Nov will affect your WTC/CTC because it will increase your annual income.  The back pay wont effect it because had amount is the same as if you payrise was made in April.   

You will be protected during the transition and then your monthly pay will be taken into account for UC.  So if in the future,  you do get a zero payment for one month (due to back pay) then it wont cancel your UC claim, just means for the month youve got the extra pay you wont get UC.  The following month you will be assessed in your new wage.
 

But the backpay can quickly erode the transitional protection if any is paid after migration, as payment before is underpayment then payment after is overpayment to compensate for earlier months, I think?  Or is it adjusted to reflect the dates it had actually been earned and due?  Am assuming not, just checking to be clear.

poppy12345

the_pink_panther_2 said:

peteuk said:

Pay rise in Sept/Oct/Nov will affect your WTC/CTC because it will increase your annual income.  The back pay wont effect it because had amount is the same as if you payrise was made in April.   

You will be protected during the transition and then your monthly pay will be taken into account for UC.  So if in the future,  you do get a zero payment for one month (due to back pay) then it wont cancel your UC claim, just means for the month youve got the extra pay you wont get UC.  The following month you will be assessed in your new wage.
 

But the backpay can quickly erode the transitional protection if any is paid after migration, as payment before is underpayment then payment after is overpayment to compensate for earlier months, I think?  Or is it adjusted to reflect the dates it had actually been earned and due?  Am assuming not, just checking to be clear.

 As previously advised, UC is based on earnings received during an assessment period, regardless of when they were for. Your earnings will not be adjusted at all.

There's some information here on TP.  https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-transitional-protection/How-long-will-I-get-Universal-Credit-transitional

Do remember that an invitation to apply could be anytime between now and end of 2024. When you do receive the letter you will have 3 months to claim it, otherwise your Tax credits will stop.

the_pink_panther_2

poppy12345 said:

Do remember that an invitation to apply could be anytime between now and end of 2024. When you do receive the letter you will have 3 months to claim it, otherwise your Tax credits will stop.

I understood that notices will be sent out by end of September, so that the 3 months to claim would take the latest claimants as far as December when factoring in their 3 months to claim, I take it from what you've said then that some are intended for being sent out after September, as late as December, in that case?

HillStreetBlues

Yes, the latest possible letters would be Sep 24 if they stick to the timetable.
https://revenuebenefits.org.uk/universal-credit/guidance/existing-tax-credit-claimants/managed-migration

DWP have said that, for most tax credit claimants, the migration exercise is scheduled to be completed by the end of 2024. They restarted work on the migration process in 2022 and from May 2022 began issuing the first migration notices

HillStreetBlues

poppy12345 said:

 As previously advised, UC is based on earnings received during an assessment period, regardless of when they were for. Your earnings will not be adjusted at all.

There's some information here on TP.  https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-transitional-protection/How-long-will-I-get-Universal-Credit-transitional

Do remember that an invitation to apply could be anytime between now and end of 2024. When you do receive the letter you will have 3 months to claim it, otherwise your Tax credits will stop.

I would say the invitation would need to be by Sep 24  to allow for the 3 months so all completed by end of 2024.

andrewmp

Iirc they amended it to March 2025 to allow for the 3 months.