Regulation 56 Transitional protection ending UC

Liononthehill

Please can anyone help with this query in regulation 56 where it refers to earnings in the first assessment period being equivalent to the threshold ( the threshold being the amount equal to the AET) ) are those earning net or gross?

(ii) in the first assessment period of the award, their combined earned income was equal to or more than that threshold.

As you lose your TP if you earned about the AET amount in your first AP and then drop below for 3 consecutive AP’s. 

I know the AET is gross for work conditionally but this is to give a threshold of earnings.

Thank you for any advice 

huckster

.Believe same threshold as per work conditionality.  Single Administrative threshold is currently £892 per calendar month as a gross earnings amount for a single claimant and £1473 per calendar month as gross earnings amount for a couple claim.

As you will read from the legislation linked to below, it is pretty complicated.

The Universal Credit (Transitional Provisions) Regulations 2014

Circumstances in which transitional protection ceases

56.—(1) A transitional capital disregard or a transitional element does not apply in any assessment period to which paragraph (2) [F2, (3A)] or (4) applies, or in any subsequent assessment period.

• Cessation of employment or sustained drop in earnings

(2) This paragraph applies to an assessment period [F3other than an assessment period in relation to an award of universal credit mentioned in regulation 60A(1) (waiver of upper age limit for claimants migrated from tax credits)] if the following condition is met—

(a)in the case of a single claimant—

(i)it is the assessment period after the third consecutive assessment period in which the claimant’s earned income is less than the amount specified in regulation 99(6)(a) of the Universal Credit Regulations (“the single administrative threshold”), and

(ii)in the first assessment period of the award, the claimant’s earned income was equal to or more than that threshold; or

(b)in the case of joint claimants—

(i)it is the assessment period after the third consecutive assessment period in which their combined earned income is less than the amount specified in regulation 99(6)(b) of the Universal Credit Regulations (“the couple administrative threshold”), and

(ii)in the first assessment period of the award, their combined earned income was equal to or more than that threshold.

[F4(3) For the purposes of paragraph (2)—

(a)references to the amount specified in regulation 99(6)(a) and 99(6)(b) respectively of the Universal Credit Regulations are to the amount that was applicable on the first day of the award; and

(b)a claimant is to be treated as having earned income that is equal to or more than the single administrative threshold and the couple administrative threshold respectively in any assessment period in respect of which regulation 62 (minimum income floor) of the Universal Credit Regulations applies to that claimant or would apply but for regulation 62(5) of those Regulations (minimum income floor not to apply in a start-up period).]

[F5(3A) This paragraph applies to an assessment period in relation to an award of universal credit mentioned in regulation 60A(1) (waiver of upper age limit for claimants migrated from tax credits) which—

(a)is not one of the first 12 assessment periods; and

(b)is the assessment period after the third consecutive assessment period in which the claimant’s earned income, (or, if the claimant is a member of a couple the couple’s combined earned income) is less than the amount that a person would be paid at the hourly rate set out in regulation 4 of the National Minimum Wage Regulations for 16 hours a week converted to a monthly amount by multiplying by 52 and dividing by 12.]

• Couple separating or forming

(4) This paragraph applies to an assessment period in which—

(a)joint claimants cease to be a couple or become members of a different couple; or

(b)a single claimant becomes a member of a couple, unless it is a case where the person may, by virtue of regulation 3(3) of the Universal Credit Regulations (claimant with an ineligible partner), claim as a single person.]

Liononthehill

Thank you I did suspect it would be gross. 

Yamor

The regulations are clear that it should be net. Whether DWP do that in practice, I don't know.