Migrated from Tax Credits - statement showing entitled to zero

Hi, I would be really grateful for some advice re the following:  Some background, I am single with no dependents, disabled and in receipt of PIP.  I was in receipt of tax credits with the disability element and I work part-time 19 hours a week.

I migrated to Universal Credits at beginning of September.  Received my first statement this week which shows my payment as 0.  I have capital over £16,000 and I appreciate that after a year I will no longer be eligible for Universal Credit, however, on my journal DWP confirmed the following "Because you moved from tax credits you are entitled to transitional protection.  This means you are eligible for Universal Credit even if you have more than £16,000 in savings"

So my statement for  7 Sept to 6 Oct shows the following:

Your payment this month is £0

What you're entitled to:
Standard allowance £368.74

What we take off
Take home pay -£474.18
Take home pay £862.14    (this is correct)

Money, savings and investments over £6,000    -£174.00  (I understand they take off money for savings between £6,000 to £16,000)

Total deductions £648.10

I also got the same figures on my statement for 7 Oct to 6 November.

Is this correct?  From what I have read, you shouldn't be worse off if you have migrated from Tax Credits, or have I got this wrong?

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  • Icequeen1
    Icequeen1 Posts: 431
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    Does the actual statement mention transitional protection - even if it says £0? 
  • sammyjammy
    sammyjammy Posts: 7,302
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    I will give it a go as you've had no responses but others are much more knowledgeable than me.

    Transitional protection means you can still claim despite the £16k or over than would normally discount you.  However your earnings are still taken into account and tariff income is still calculated.  As your prescribed amount before deductions is only £368.74 then the earnings reduction alone removes any entitlement for that month so its correct that the amount paid is nil.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Icequeen1
    Icequeen1 Posts: 431
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    I will give it a go as you've had no responses but others are much more knowledgeable than me.

    Transitional protection means you can still claim despite the £16k or over than would normally discount you.  However your earnings are still taken into account and tariff income is still calculated.  As your prescribed amount before deductions is only £368.74 then the earnings reduction alone removes any entitlement for that month so its correct that the amount paid is nil.
    It is correct that earnings are taken into account and tarrif income - but they shoudl also be taken into account when calculating TP. 

    OP - on your statement between the standard allowance and TOTAL ENTITLEMENT BEFORE DEDUCTIONS is there something that says transitional protection?
  • mari2315
    mari2315 Posts: 11
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    Icequeen1 said:
    I will give it a go as you've had no responses but others are much more knowledgeable than me.

    Transitional protection means you can still claim despite the £16k or over than would normally discount you.  However your earnings are still taken into account and tariff income is still calculated.  As your prescribed amount before deductions is only £368.74 then the earnings reduction alone removes any entitlement for that month so its correct that the amount paid is nil.
    It is correct that earnings are taken into account and tarrif income - but they shoudl also be taken into account when calculating TP. 

    OP - on your statement between the standard allowance and TOTAL ENTITLEMENT BEFORE DEDUCTIONS is there something that says transitional protection?
    Thanks for your responses.  No, there is nothing on my statement that says transitional protection
  • Icequeen1
    Icequeen1 Posts: 431
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    mari2315 said:
    Icequeen1 said:
    I will give it a go as you've had no responses but others are much more knowledgeable than me.

    Transitional protection means you can still claim despite the £16k or over than would normally discount you.  However your earnings are still taken into account and tariff income is still calculated.  As your prescribed amount before deductions is only £368.74 then the earnings reduction alone removes any entitlement for that month so its correct that the amount paid is nil.
    It is correct that earnings are taken into account and tarrif income - but they shoudl also be taken into account when calculating TP. 

    OP - on your statement between the standard allowance and TOTAL ENTITLEMENT BEFORE DEDUCTIONS is there something that says transitional protection?
    Thanks for your responses.  No, there is nothing on my statement that says transitional protection
    I would put a note in your journal asking for your transitional element calculation. I have seen some posts on another forum lately that seem to suggest some people have had their first UC award and then their transitional element calculation done later with separate payments. If that part is missing, maybe for some odd reason they just haven't done a calculation. 
  • mari2315
    mari2315 Posts: 11
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    Thanks Icequeen.  Will put a note on my journal as you suggest and see what they say.  Thanks again for your response.
  • Newcad
    Newcad Posts: 804
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    edited 10 November 2023 at 1:18PM
    As well as checking the TE I'd also suggest that as you have PIP then, if you haven't already, you should get doctors 'Fit Notes' and send them to UC using the 'Report a Fit Note' on your journal..
    Because you were working over 16 hours a week you would not have been able to claim ESA, but things are different with UC.
    Sending in the fit notes should trigger a referal for an assessment for Limited Capability for Work.
    It does take time for an assessment to be done, but any award given at assessment will be backdated to 3 or 4 months after you start sending in the fit notes. (That depends a bit on timing but 4 months is the most it can be).
    If you are awarded LCW, (or the higher LCWRA), that entitles you to a 'Work Allowance' which in your case as you have no Housing Element would be £631.
    That's an amount of money that you can earn before they start deducting 55p in the £ from it.
    That would reduce the deduction from pay from -£474.18 to -£127.13, meaning that there would then be £67.61 UC to be paid each month. Not a lot but better than zero.
    If you get awarded the higher LCWRA (which you probably won't as you are already working, but there is a chance) then that also gives an extra £390.06 LCWRA Element payable on your UC amount as well as the Work Allowance.

  • Newcad said:
    As well as checking the TE I'd also suggest that as you have PIP then, if you haven't already, you should get doctors 'Fit Notes' and send them to UC using the 'Report a Fit Note' on your journal..
    Because you were working over 16 hours a week you would not have been able to claim ESA, but things are different with UC.
    Sending in the fit notes should trigger a referal for an assessment for Limited Capability for Work.
    It does take time for an assessment to be done, but any award given at assessment will be backdated to 3 or 4 months after you start sending in the fit notes. (That depends a bit on timing but 4 months is the most it can be).
    If you are awarded LCW, (or the higher LCWRA), that entitles you to a 'Work Allowance' which in your case as you have no Housing Element would be £631.
    That's an amount of money that you can earn before they start deducting 55p in the £ from it.
    That would reduce the deduction from pay from -£474.18 to -£127.13, meaning that there would then be £67.61 UC to be paid each month. Not a lot but better than zero.
    If you get awarded the higher LCWRA (which you probably won't as you are already working, but there is a chance) then that also gives an extra £390.06 LCWRA Element payable on your UC amount as well as the Work Allowance.

    Newcad - no I haven’t submitted fit notes.  Thanks for the information.  UC is very different to Tax Credits - lots to get my head round!
  • Are you worse off on UC than you were on TC?
     I'm just asking as on the page linked below it states 'Your transitional protection amount will top your Universal Credit up so that it matches your previous benefit income to ensure you are not worse off due to the move to Universal Credit.'
    https://www.turn2us.org.uk/get-support/information-for-your-situation/universal-credit-uc-transitional-protection/how-much-universal-credit-uc-transitional-protection-will-i-get
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 8,192
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    edited 11 November 2023 at 1:10AM
    greenhill said:
    Are you worse off on UC than you were on TC?
     I'm just asking as on the page linked below it states 'Your transitional protection amount will top your Universal Credit up so that it matches your previous benefit income to ensure you are not worse off due to the move to Universal Credit.'
    https://www.turn2us.org.uk/get-support/information-for-your-situation/universal-credit-uc-transitional-protection/how-much-universal-credit-uc-transitional-protection-will-i-get
    If they were receiving TC payments then presumably a UC award of £0 means they are worse off!
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