Universal Credit Housing Element Increase Confusion

[balloons4ever]

Hi everyone.

I claim Universal Credit and receive my housing cost payments myself, so I'm responsible for passing these on to my HA landlord. The rent is just under £100 per week, so is well within the allowed limit.

Like with most people in social housing, my rent increased in April - by about £30 per month (still less than £100 p/w). UC have adjusted my overall monthly payment to include the revised rent amount, but have reduced other elements of my claim to make up for it - in other words, I'm now effectively paying the extra £30 p/m myself because my overall payment hasn't changed at all.

I've queried this through my UC Journal but the replies have been contradictory and unhelpful. This was the last response I got a few days ago:

"This is due to that your Transitional Protection element has decreased due to the increase of your housing element.

As per your latest statment;

Your transitional protection payments have been decreased.
This is because you are now being paid more Universal Credit.

This is per policy of Universal Credit. Your payments have been calculated correctly."

To me, this is just gobbledegook, and I wonder if anyone else is in my position of having reported a rent increase, only to find that other elements of their claim have been reduced to allow for this?

Any replies would be gratefully received.

Thank you for taking the time to read this.

Aah sorry, I didn't know that about social housing! I've learnt something today 😉

Transitional protection means that you won't receive any increases until the additional amount added for the transitional protection has been eroded.

It's brutal, imo, but them's the rules.

This might help:

https://www.scope.org.uk/advice-and-support/transitional-protection-and-universal-credit/?gad=1&gclid=CjwKCAjw-b-kBhB-EiwA4fvKrM7m4nZBPoAov3esORKQoD8XG7q91MB5yg_GRC3PVGfLpP7J_Im7rBoCxhoQAvD_BwE#Transitional-payments-reduce-as-your-Universal-Credit-increases-click

"Transitional payments reduce as your Universal Credit increases
If your Universal Credit rate increases, you will receive less in transitional payments. The total you receive will stay the same until you stop receiving transitional payments.

For example:

You start with receiving a total of £1,000 a month from:

£900 Universal Credit
£100 transitional element
Then, the Universal Credit rate goes up to £950. You would still receive a total of £1,000 from:

£950 Universal Credit
£50 transitional element
If the Universal Credit rate increases by another £50, you would still receive £1,000. The transitional element would then be £0.

If your Universal Credit rate goes up again to £1,050, you would receive all of it. This is because you would not be receiving any transitional payments."

Thanks @LakieLady.

Yes, I understand that - it's actually simple. But my issue is with my Housing Costs going up and this amount being taken from my Transitional Protection.

Effectively, it means that I am now paying the increased part of my rent out of my own pocket. If you claim Housing Benefit and are also in receipt of JSA (for example), and your rent goes up, the difference isn't then deducted from your JSA.

I know this is a different scenario but the principals are the same.

Thanks, @Lougle.

Thanks for that link. The info in it seems very clear, except in the case of a rent increase vis-a-vis Transitional Protection.

Increasing UC to balance reduced TP is easy to understand, but it's when TP is reduced due to a rent increase that I simply can't fathom.

It doesn't matter why the UC is increased. Although universal credit is made up of elements, they are collectively totalled and the whole amount is subject to deductions for income, etc. The fact that it is your rent that has increased the total is irrelevant.

@Lougle
Again, I understand about TP reducing because of UC increasing (that's easy), but the housing element is not part of Transitional Protection. I'm curious to know why Housing Costs aren't mentioned in the link you provided.

Do you know if it would make any difference to the amount I receive (after the rent is subtracted), if I asked UC to pay my rent directly to my landlord, rather than to me?

https://www.entitledto.co.uk/help/transitional-protection-universal-credit

"However, if your Universal Credit entitlement increases (for example, due to an annual increase in benefit rates, a new element being included in your award or your rent increasing), your transitional element will be reduced by the amount of the increase. Changes to your childcare costs will not reduce your transitional element."

Rent increases count, childcare doesn't. If UC pays your landlord direct, the amount is still included in your claim.

I agree with @Lougle.

It's grossly unfair but that, without a doubt, is how government meant it to be.

The only way it will change is by a public campaign forcing government to cave in.

@Lougle, thank you.

Yes, that is very clear. I was shaking my head in disbelief while reading it. I'd love to hear a DWP rep try and explain how anyone in their right mind could think this is fair.

Anyway, I appreciate your help.

@Bromptotoo, thanks for your input.

The public campaign began years ago and the government keeps on losing High Court cases brought by people who are much worse off, having been forced to change to Universal Credit. The problem is that no court can order a government what to do. One reason the DWP keeps on losing is because they can't justify their own unfair rules, so judges end up constantly berating them.

This was a high profile case at the start of last year. Recently, I contacted the solicitors involved, and was told that their two 'victorious' clients are still waiting for the extra money the court said they should be paid. Now that's what I call a hollow victory...
Severely disabled benefits claimants TP and AR win legal challenge over loss of income caused by move on to Universal Credit | Leigh Day

Have you seen this article? Covers this issue (in a very detailed way!!)

https://askcpag.org.uk/content/207613/erode-to-nowhere

Despite the serious situation it does also have an excellent headline
I would speak to CPAG if you haven't already.

I don't think it is unfair, tbh. The TP is to make sure you don't end up worse off as a result of migration. If you didn't get UC, you'd have less available funds if your rent goes up. You do get UC, so you get the rent element paid for, but the increase reduces your TP to match your original TC award. Eventually, once your TP is completely gone, your UC amount will go up to match your rent and you won't be any better or worse off because of it.

@Lougle but if OP is getting Rent + £100 (for example) and then after TP eroded gets Rent + £80 then...yes she'll be worse off? Unless I misunderstood your post?

She will, but no worse off than someone on traditional Universal Credit without TP and no worse off than someone who rents/has a mortgage whose rental costs go up.

Transitional protection was always a 'mark time' protection. It was never intended to make sure that people are never worse off, just that they don't get an immediate drop when they migrate.

@Lougle, I appreciate your help in this thread but must point out that a year ago I was claiming HB as well as JSA and two DWP disability benefits (which the law said I must receive). Then I moved 2 miles up the road and was forced to switch to UC. I immediately lost my lawfully-entitled disability benefits. The net result is that, compared to before I moved, I am now £130 per month worse off.

Thanks for your understanding. You are correct. Please see my above post.

@ThreeFeetTall, thank you for posting that article. I will read it carefully a couple of times, and yes, I think contacting them might help me to get my head around these disgracefully unfair rules.

Have I understood this correctly - when the UC rate you are entitled to equals or surpasses the amount of tax credits + housing benefit you received pre migration (because of the annual UC increase or a change in your circumstance) UC will then pay your full rent?

The claim is treated as a whole so any deductions will come off the whole award, presumably also any erosion in transitional protection.

a year ago I was claiming HB as well as JSA and two DWP disability benefits (which the law said I must receive). Then I moved 2 miles up the road and was forced to switch to UC. I immediately lost my lawfully-entitled disability benefits. The net result is that, compared to before I moved, I am now £130 per month worse off.

Disabled people have been completely screwed over by the switch to UC. I'm currently not eligible for anything besides PIP, but I live in fear of being unable to work, and I'm working myself silly ATM to improve my pension position for exactly that reason.

I think most people aren't really aware of how the system nickel and dimes disabled people.

I do feel for you OP.