Universal Credit Disregard

Newcad

Not quite as I see it.

The Transitional Element is about the difference between your current benefit entitlement and your UC entitlement.

Deductions come AFTER your UC entitlement has been calculated so are not included in any TP calculation which is about entitlement.

Which is why we see some people wose off after migration. (Particularly migration from Tax Credits). Their previous entitlement is compensated for by the TE, but then any deductions under UC rules (different to TC rules) may reduce their UC payments.

It isn't the TP/TE that reduces the UC payments. It's the deductions that they then have have after the TE has been added into their entitlement. Deductions due to income, savings/capital. or other deductions.

HillStreetBlues

Spoonie_Turtle said:

Rubyroobs said:

You will have tarriff income deductions on anything between 6k and 16k. 

Though as far as I understand the transitional element is supposed to account for that (unless their UC would be above the legacy benefit amount even with the deduction).

Yes the TP is based on "indicative' UC amount. The "indicative'  amount takes into account of the income of capital between £6-£16k

Yamor

Newcad said:

Not quite as I see it.

The Transitional Element is about the difference between your current benefit entitlement and your UC entitlement.

Deductions come AFTER your UC entitlement has been calculated so are not included in any TP calculation which is about entitlement.

Which is why we see some people wose off after migration. (Particularly migration from Tax Credits). Their previous entitlement is compensated for by the TE, but then any deductions under UC rules (different to TC rules) may reduce their UC payments.

It isn't the TP/TE that reduces the UC payments. It's the deductions that they then have have after the TE has been added into their entitlement. Deductions due to income, savings/capital. or other deductions.

All such deductions are taken into account when calculating the "indicative UC amount", and therefore the transitional element will compensate for them.

atlantis187

I'm getting confused with all this
Currently we are getting £599 a week on Tax credit 
So with the Transitional Protection taking into account the saving and the extra property surely we not going to get less than this a week are we for the first 12 months on UC?