Losing UC Transitional Protection

cheddar

This might be a bit long so I'll try my best to keep it concise! 

Current situation: Me, spouse, adult child, child's spouse in social housing. I, my spouse, my child all claim PIP (I get standard DL and Mob, spouse gets enhanced DL, child gets enhanced DL and mobility). Child is uni student with no other income, I'm a carer for spouse, spouse is carer for my child, child's spouse is nil income and not claiming anything due to being on spouse visa. 

We currently claim UC, Carer's Allowance, CTS. The UC has a large TP applied as we got disability premiums on previous IS claim. 

I'm considering doing some very part time self-employed work, probably around 8-10 hours a week just for me to get out the house and also with some concern about myself and my spouse losing PIP and getting low UC in 2026 and being expected to work as neither of us get 4pts for any category in DL.

The job will be a new set up and I am unsure how much I'll earn but it's likely to be a low amount to start with. I understand that there is minimum floor income applied for SE people but also that this can be delayed for a year (I think?). 

My question/concern is: What if I give this new venture a try and it doesn't work out? If we go back to our current situation would we lose the TP? Would I lose the TP as soon as I start work? If so, it feels like I'm trapped in a situation where unless I would have a guaranteed income of over £500 month or so we'd be considerably worse off. 

Thanks in advance for any info/advice. I will likely contact UC about this at some point as it seems a bit complex but thought I'd ask here first. 

Spoonie_Turtle

Assuming you have the carer element (or LCWRA) then there will be no Minimum Income Floor for you at any point. 
[The MIF can only apply to people who are gainfully self-employed, and that determination can only be applied if someone is in the all work-requirements group.  As a carer and/or with LCW/RA, you are not in that group.]

If you or your spouse have LCW/RA then you have the work allowance on your claim which means you can earn a certain amount (£404/month as you rent) before they start making any deductions for earnings.  Deductions are then 55% of what you earn above that.

I can't think of any reason your transitional protect would be affected but other members will be able to confirm or correct.


On the subject of PIP, I'd advise looking into whether either of you should qualify for a 4-point descriptor, unless you are fully satisfied your awards are 100% accurate in every way.  It's very common for people to get an award that's at the right level but with inaccurate descriptors, so they don't challenge it because it's at the right level anyway.

cheddar

Thanks Spoonie. Yes, we have the carer element. It's good to know the MIF won't apply as there may be times when I'm earning less than NMW starting out. 

We don't have any work allowance on our claim, neither of us have ever had a work focused assessment as we've been carers for a while. 

I did try benefits calculators to see how we'd be affected if I did a bit of work and earned around £350 a month and one showed we'd be worse off and another showed we'd be better off. So confusing but I think it's because one of them asked if we were in LCW/RA and as we're in neither I chose "none". 

Spoonie_Turtle

From a UC standpoint, you should be better off earning because you get to keep 45% of what you earn.

Whether it would affect your Council Tax I don't know. 
(If you earned enough to have to close your Carers Allowance claim, it wouldn't change anything overall because you'd no longer be having a deduction from your UC for it.)

cheddar

I thought so too, it affects the CTS by a small amount but that's ok. I am unsure why the other calculation was so off. If I contact UC would they be able to estimate the changes for me? I've never had any dealings with them before other than migration. 

Spoonie_Turtle

No, UC only deal with changes when they happen and the staff aren't very good at giving advice.

cheddar

Ah okay, I'll try Citizens Advice or if anyone knows of a service/organisation that could help please let me know ^_^