Managed migration payments very different

Auti

Hello. No, their answer to transitional element is UC child element is equal (within a couple of pounds) to the CTC element therefore no transitional element due. 

My thinking is Yes it does matter how each benefit is calculated. Both UC and CTC use exactly the same amount for my income (CBESA, Pension) and have virtually the same amount allocated to the child element.

UC has a pre determined set of elements I qualify for (inc child element) and start from this amount from which they then deduct my income. In a month I get my full income (paid by CBESA and Pension) But because of the way UC is calculated with the deductions I lose some of the child element due to the way they deduct my income.

CTC uses my income and because it is below their threshold, award me the full CTC (same amount virtually as UC element). CTC add my full income together and then add the CTC to that amount (by paying me the CTC amount in full). So in a month I get all my income (CBESA/Pension) plus the full CTC payment.

This is only my thoughts but I am at a loss as to how it can be so far adrift using my income amounts and virtually the same CTC/UC child award.

Auti

This is at odds with the Payment entitled to I got with my first payment. I got/get Limited capability for work and work related activity element as well. Child tax credits know and include my CBESA in each years award of CTC (I went from WTC to CBESA). None of it makes any sense.

Icequeen1

Auti said:

This is at odds with the Payment entitled to I got with my first payment. I got/get Limited capability for work and work related activity element as well. Child tax credits know and include my CBESA in each years award of CTC (I went from WTC to CBESA). None of it makes any sense.

@Yamor is likely the best person to explain the detail. The first payment of UC needs to be put aside in terms of working out transitional protection - it is not the actual UC award that is relevant but a notional UC calculation that uses certain assumptions set out in legislation. 

I'm not really sure what to say other than it doesn't appear that they have followed the legislation so you should keep going with your MR. There have been a lot of threads on this issue and it comes down to the way that DWP seem to be operating the process of calculating the transitional element.

Does that £314 amount for child tax credits look right? (that is a monthly figure)

Auti

CTC was paid every 4 weeks @ £10.34 per day - this is taken from my Final Tax Credits Decision for 06/04/2023 to 05/09/2023 (when my claim ended due to managed migration. Hope this helps.

edit: had to remind UC that I do not have a benefit cap due to PIP

Icequeen1

Auti said:

CTC was paid every 4 weeks @ £10.34 per day - this is taken from my Final Tax Credits Decision for 06/04/2023 to 05/09/2023 (when my claim ended due to managed migration. Hope this helps.

edit: had to remind UC that I do not have a benefit cap due to PIP

It shouldn't have been taken from the final decision - it should have been taken from the last award before the final decision. Honestly its hard to make sense of what they have done. 

Yamor

The £10.34 daily rate is correct. It happens to be the same on the final decision for the part year, but would have also been that amount on the last award notice for the full year which you received prior to migration.
(This is not by chance: as your income is below the CTC threshold, your entitlement was not tapered at all, so it follows that the daily rate in both award notices was the same.)

The explanation they've given makes it clear that it was the ESA which wasn't taken into account, and is what has caused the problem.
This has led to two errors in the calculation of your "indicative UC amount": 1) not including the LCWRA element, and 2) not including the ESA income as unearned income.
These somewhat cancel out, but leaves you worse off overall.

You should certainly proceed with the MR...

Auti

Update: ‘I have raised your request as an urgent resolution which is required to look at your claim submitted for Universal Credit and the details transferred over from HMRC.’ From a UC manager ( still don’t think this is anything to do with the MP involvement yet).

Does she mean that my use of mandatory reconsideration is not correct and that now I have to request ‘an urgent resolution’? It is getting more silly by the minute and I wonder if I will get the cost of living payment or will that get lost in all this muddle!

I shall keep going until I get a piece of paper that says exactly why there is such a discrepancy.

Auti

Hello - nothing has happened yet. Need some advice though - my second payment advice notice (same as first one that I am contesting) is now on my journal and states I have to challenge if I believe it is wrong within a month. I have already challenged the first one numerous times and still not got anywhere so do I now start challenging this second one in the same way? Ask for a MR even though they have ignored my previous 7 requests? Will be contacting the MP again to see if he has heard anything but I don’t hold out hope. Thank you

Auti

Well decided to write again on my journal so they can’t say I did not challenge the payment. I have challenged both payments and requested an MR (again - 8 written times now plus 2 verbal and 2 emails from MP) and acknowledgement that my message has been read and actioned………… 

MP office have said they have had both the emails sent by MP acknowledged and they are happy as to whose office has acknowledged them - also been told MP will not give up on this. It will be interesting to see what happens this month, I should be thankful they are still paying me something

I will update as it goes along if nobody minds as it is helping me to keep it in perspective rather than it overwhelming me. 

Thank you

Icequeen1

Thanks for the update. Sorry they are still not accepting your MRs - but do keep this post updated as it may help others as well.