Is There A Lag Applying Managed Migration Attributes To A UC Application?

Pinner_Boy

I’ve moved from tax credits to universal credit via managed migration.  I have over £16,000 in savings and have had a deduction applied to my first payment because of my savings, incorrectly I believe.

The deduction looks to be the equivalent of 4 days of my full UC payment.  Looking at my journal, if my application was on Day 1, the entry saying that savings are not taken into account for the first 12 assessment periods appears on Day 5.

Does anyone know if this is some kind of glitch in the system?:  It takes a few days for the “managed migration” attribute to be applied to the UC application and consequently claimants don’t benefit from the savings disregard from Day 1 of the award?

Or could there be some other explanation for the deduction?

I queried the deduction in my journal (pointing out that this was a managed migration) but DWP insisted it was correct because I have savings.  :'(

NedS

A deduction of £174/month would be correct.

Everything over £16k is disregarded, but there will be a deduction for tariff income applied to the amount between £6k and £16k - a total of £174/month should have been deducted. This is calculated as £4.35/month for each £250 or part thereof, above £6k (up to £16k). There are 40 lots of £250 between £6k and £16k, hence 40 x £4.35 = £174/month.

Any disregard applies to the fact that you are entitled to claim UC for 12 months whereas otherwise you would not be eligible with capital over £16k. After 12 months, your claim for UC will close if you still have capital over £16k.

Pinner_Boy

Ah, I see, thanks, I understand now.

Yamor

If the £174 deduction causes your UC entitlement to be lower than your entitlement under tax credits, then you should be entitled to a transitional element as well to make up the difference.