Please can someone help me with the new UC changes, I do not understand it :(

HillStreetBlues

TimeLord1 said:

HillStreetBlues said:

huckster said:

2) Yes UC will honour disregard of capital over £16k in line with ESA decision. I thought the 1 year capital disregard was for tax credit migration claimants to UC. Other people replying will confirm if this 1 year disregard also applies to ESA/HB migration claimants.

Your thought is correct, the capital disregards apply only migration from TC,  but if a person already has disregard that carries over.
With a personal injury payment  it's disregarded for 12 months that give a person time to set up a trust where it's disregarded indefinitely

With the disregarded date of June 2025 migrating to UC do they use the initial date or disregard it for a further year because of migration ?

The initial date. It's 12 months from first payment, there is no reset.

kaMelo

TimeLord1 said:

HillStreetBlues said:

huckster said:

2) Yes UC will honour disregard of capital over £16k in line with ESA decision. I thought the 1 year capital disregard was for tax credit migration claimants to UC. Other people replying will confirm if this 1 year disregard also applies to ESA/HB migration claimants.

Your thought is correct, the capital disregards apply only migration from TC,  but if a person already has disregard that carries over.
With a personal injury payment  it's disregarded for 12 months that give a person time to set up a trust where it's disregarded indefinitely

With the disregarded date of June 2025 migrating to UC do they use the initial date or disregard it for a further year because of migration ?

There is no "1 year capital disregard" because of migration from irESA as capital affects both benefits equally.

The 1 year capital disregard was specifically for tax credits claimants who moved to UC under managed migration.

TimeLord1

HillStreetBlues said:

TimeLord1 said:

HillStreetBlues said:

huckster said:

2) Yes UC will honour disregard of capital over £16k in line with ESA decision. I thought the 1 year capital disregard was for tax credit migration claimants to UC. Other people replying will confirm if this 1 year disregard also applies to ESA/HB migration claimants.

Your thought is correct, the capital disregards apply only migration from TC,  but if a person already has disregard that carries over.
With a personal injury payment  it's disregarded for 12 months that give a person time to set up a trust where it's disregarded indefinitely

With the disregarded date of June 2025 migrating to UC do they use the initial date or disregard it for a further year because of migration ?

The initial date. It's 12 months from first payment, there is no reset.

That's what I thought for a personal injury payment. It's a difficult situation to deal with.  Hopefully they keep it updated to get advice.