Managed migration payments very different

Auti

Hello. I have just got my ‘how much we will pay you’ (first one since managed migration) and it is lots lower than my child tax credit payment. CTC was £281.52 every 4 weeks and UC is going to be £176 every 12th of the month. I am now very worried as it is a lot of money to lose each month - my heating money. 

They say I can say if I think it is wrong but I dont know why it is wrong only that they say I am not allowed any transitional payment - I am confused

thank you

huckster

How old are the children ?  And what month do their birthdays fall within ?  And if over 16, are they still in education or training ?

Thinking it might be to do with ages of your children and the information on the claim submitted. 

Auti

Huckster - child age 9 - May. They have deducted the contribution ESA and my ill health pension as unearned income. I think it is the pension that is causing the problem but I don’t know how to sort it.

huckster

Send a journal message asking for mandatory reconsideration, as it appears an error has occurred with transitional protection. You are now worse off than tax credits, possibly because they are deducting for ill health pension.

NedS

Auti said:

Hello. I have just got my ‘how much we will pay you’ (first one since managed migration) and it is lots lower than my child tax credit payment. CTC was £281.52 every 4 weeks and UC is going to be £176 every 12th of the month. I am now very worried as it is a lot of money to lose each month - my heating money. 

They say I can say if I think it is wrong but I dont know why it is wrong only that they say I am not allowed any transitional payment - I am confused

thank you

Do you have a Transitional Protection element listed on your UC statement with an amount next to it?

Auti

@NedS. They say there is no difference in payments so I do not qualify for transitional payment. Transitional Protection is 0.  Why also does it say in big bold writing above this ‘Your payment this month is £176’. That is different by pence to what it says at Total Payment (£176.85). Does UC not pay the pence part? It is ill health pension they are taking off along with contribution ESA.

KxMx

That's the way UC write their statements, you will get paid the pence part.

Can't advise on the other issues, I'll leave that to those with more knowledge. 

huckster

When did you start receiving ill health pension ?

Could it be that tax credits have been overpaying you and UC payment reflects current entitlement? 

Auti

Huckster - about 3 years ago and it shows on my CTC award ever since I got it, and they have always known and calculated it on final tax award notice etc.

Spoonie_Turtle

I can't advise here, but it is helpful to see the screenshot so thanks for posting that.  It's useful to see they definitely are making deductions after applying any potential TP and how they've worked it all out.  Not at all what people were led to believe about not being worse off.

Icequeen1

Spoonie_Turtle said:

I can't advise here, but it is helpful to see the screenshot so thanks for posting that.  It's useful to see they definitely are making deductions after applying any potential TP and how they've worked it all out.  Not at all what people were led to believe about not being worse off.

I think there is a lot of misunderstanding about the how the transitional element is calculated. The fact that deductions are made against it isn't relevant - the calculation method ensures that is already accounted for. The transitional element is part of the maximum UC amount before the income taper is applied and that is reflected in the calculation of the transitional element - it is not a supplement added to the UC award. So the deduction for income brings the award down to an amount that is equal to the legacy benefits - in theory. 

Edited to add an example:
Lets say the OP's tax credits were £300 a month. Their UC award above is showing as £176 a month. So they are £124 worse off. If you add a transitional element of £124 into the calculation, that makes the maximum UC £1197.80 less deductions of £896.95. That would leave UC of £300. So the fact deductions are taken off after transitional element is added is ok. It all works out. 

That means there is another reason why the OP has not received a transitional element - it is either a mistake or it is correct. It is possible that people receive a lower first UC award than their legacy benefits and don't qualify for transitional protection - that's because the transitional element is not calculated by reference to the actual first UC award, it is calculated by reference to a notional UC award that is calculated using certain assumptions in the legislation. 

OP - i would suggest you ask DWP for a breakdown of the calculation of the transitional element and get an experienced welfare rights worker to check it for you.