Reduction in Universal Credit due to rent increase

DrDeejUK

I moved to Universal Credit last year from ESA. I am in the LCWRA and (supposidly) receive transitional protection. However, my last payment went down to the tune of £60. So I am now getting £60 less a month in my bank. I have had no increase in the amount of out of work benefits that I receive. That has stayed the same as last year. No increase. What has gone up is my rent. DWP have even left a note to say I am receiving less money because my rent went up. How is this fair? I understand that if I was to get an increase in out of work benefits then they would take from the transitional protection. I totally understand that but it would even up - give one side and take from the other. I get that. However, taking away from me because my rent has gone up is obscene. I never had money taken out of my ESA when my rent went up. Why are they doing this? What is the point of transitional protection? I thought the whole point of it was so that I would not get any less money in my pocket than when I started receiving it and eventually any extra out of work benefit would even out the transitional protection until I am even with everyone else. Can I complain?

KxMx

Transitional Protection is added if your total UC award is lower than legacy benefits at the time of transfer.

It's designed to erode as other elements go up or new elements are added, and stops entirely with a major change of circumstances.

Universal Credit replaced 6 working age benefits including Housing Benefit (in all but a few circumstances).

So an increase in Housing Element will correctly cause a corresponding decrease to your Transitional Protection.

Unfortunately, there is nothing you can do.

teaselMay

As above the transitional protection applies to your total UC amount, including the housing amount. When the LHA cap was lifted briefly a few years ago my housing allowance went up by £200, still £100 less than my rent, and my transitional protection disappeared. In total, including the amount for your rent, you must be receiving more.

DrDeejUK

https://forums.moneysavingexpert.com/discussion/comment/82018802#Comment_82018802

Okay. So what happens if the rent goes down next year. Do I get paid more money or do they just not take any more money off? I'm confused.

HillStreetBlues

Your payment (the money you get) shouldn't go down due to TP. If TP was just being eroded then payment should stay the same until it's totally eroded.

What are your last two UC breakdowns? If you can post them with personal info redacted that would help. (forget that if your payment is direct to landlord as the total should be the same)

teaselMay

The amount going into the bank account might go down if the housing allowance is being paid directly to the landlord, but the total amount shouldn't go down

Newcad

There is a similar situation posted today on Rightsnet. (Might even be the same case?)

https://www.rightsnet.org.uk/forums/viewthread/21899/

ie. The private rent went up, but of course the LHA didn't.

So although there was/is no change to the UC Housing Element payable UC have decided to reduced the TP anyway.

Which is a double whammy for the claimant and pretty obviously a wrong decision.

TP gets eroded by increases in other UC Elements, but if nothing has increased then TP shouldn't be eroded.

Challenge it with a message on the "Payments" section of the Journal.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82019075#Comment_82019075

The OP need fully explain the situation, as I'm not sure TP has anything to do with it.

huckster

I suspect that they still receive New Style ESA separately and ESA is deducted from UC as other benefit income. The OP needs to provide full details, otherwise it is just guess work.

DrDeejUK

https://forums.moneysavingexpert.com/discussion/comment/82018919#Comment_82018919

Okay. So for my March payment in April it read as this :

What you're entitled to

Standard allowance

£400.14

You get a standard amount each month. You said you're single

Housing

£450.10

Need help understanding your housing?

You said per month the total rent for your property is £435.67 and the service charges are £14.43.

We can pay your landlord £450.10 towards your housing.

Limited capability for work and work-related activity (LCWRA)

£423.27

You said your health affects you at work or prevents you from working

Transitional protection

£206.67

You get this because of other benefits you were on before you moved to Universal Credit.

The payment will continue until you have a significant change of circumstances.

Total entitlement before deductions

£1,480.18

What we take off (deductions)

Money, savings and investments

minus ‑ £0.00

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £2,965.42.

You must
tell us if this changes so that we can pay you the correct amount on time.

The first £6,000 of your money, savings and investments
does not affect your payment. If you have over £6,000 up to £16,000,
every £250 reduces your Universal Credit by £4.35. For any remaining
amount that is not a complete £250, a further £4.35 is also deducted.

Payment to your landlord

minus ‑ £450.10

We currently pay this to your landlord towards your rent.

Total deductions

minus ‑ £450.10

Your total payment for this month is

£1,030.08

And then my April payment in May read like this…


What you're entitled to

Standard allowance

£400.14

You get a standard amount each month. You said you're single

Housing

£505.66

Need help understanding your housing?

You said per month the total rent for your property is £456.60 and the service charges are £49.05.

We can pay your landlord £505.66 towards your housing.

Limited capability for work and work-related activity (LCWRA)

£423.27

You said your health affects you at work or prevents you from working

Transitional protection

£151.11

Your transitional protection payments have decreased.

This is because your Universal Credit entitlement has increased.

Total entitlement before deductions

£1,480.18

What we take off (deductions)

Money, savings and investments

minus ‑ £0.00

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £2,965.42.

You must
tell us if this changes so that we can pay you the correct amount on time.

The first £6,000 of your money, savings and investments
does not affect your payment. If you have over £6,000 up to £16,000,
every £250 reduces your Universal Credit by £4.35. For any remaining
amount that is not a complete £250, a further £4.35 is also deducted.

Payment to your landlord

minus ‑ £505.66

We currently pay this to your landlord towards your rent.

Total deductions

minus ‑ £505.66

Your total payment for this month is

£974.52

Spoonie_Turtle

That's unfortunately correct. As your housing element increased it erodes your transitional protection so your overall entitlement stays the same.

You'd have received the same amount of UC if they didn't pay your landlord directly, but then you'd have had to pay more for rent yourself and be left with less anyway.