Universal credit managed migration thread

[ChristmasCatBells]

Anyone else waiting for a migration notice this year?
Looks like they are planning to move people on tax credits only onto universal credit this year but haven't released any detailed timetables about areas.
Thought it might be useful to share experiences and information on here for those affected.

Thanks for the update @whonickedmyusername , so does that mean your income will not drop due to the savings in that first year? I am over the threshold so expecting to lose all top ups next year. I’m due to apply beginning of October and have been dreading it.

This is the info I received:

"Any amount between £6,000.01 and £16,000 means your Universal Credit will be reduced. The reduction is £4.35 per month for each £250 over £6,000, and £4.35 for any remaining amount that is not a complete £250.

We have looked at the information you gave us to support your claim. We have decided not to include your capital over £16,000 for 12 months as part of your transitional protection. During this time, we consider you to have money, savings and investments of £16,000."

So we're ok for a year at least. Working it all out (myself - UC will i'm sure have a different figure) i'll be a few pounds better off on UC. At least I won't be out of pocket anyway.

@Sherrycat I had to go in to prove I had the amount of money I put down on my application, so had to take in 3 months worth of statements. I think this only applies if you have over £16k of savings maybe?
The lady just looked at the top pages, input some info onto her computer and that was it! Got myself worked up for nothing.
It really won't be as bad as you imagine 💐

So even though they say you get the protection for a year you still lose so much if savings up to 16k. ??

I’m reading that as if you will lose money for the transitional year and it could be about £200 ish per month for this final year before we lose the rest of it? Think I’m going to face the fear and phone and ask them later today.

Yes looks like it will be £4.35 per £250 over 6k lost each month, so about £174 off your Uc each month for savings.

You can only try. I was very anti-UC a few weeks ago, but i'm an idiot, had a word with myself and went for it. I'm glad I did tbh. We're entitled to it, and any money helps at the moment.

@whonickedmyusername thanks for your update. So pleased it's working out well for you. I'm feeling a bit more confident at applying now.

It's confusing, I thought you weren't meant to be worse off?

The transitional protection is as long as your circumstances haven't changed. If you have received a chunk of money/savings then it may be different

Comparing it to someone already on UC who has 16k savings, it would surely not be fair to let those migrating still keep the extra £176 UC that those already on UC lose in terms of tarrif income, as well as potentially having savings of a lot more than 16k as well. It has been hugely unfair to those on UC for a long time to see those on tax credits being able to have unlimited savings/ second properties, keep most of their student loans on top of tax credits etc whilst those on UC can often be a lot worse off. although of course can be better off too. There are always going to be stumbles I guess to get everyone on an even par . I do appreciate it's difficult though.

The limits of transitional protection should be clear before you apply though. I got my letter three months out, it would make a huge difference if someone applied straight away or waited until the last minute.

None of it's particularly 'fair'. I'd just be interested to know, with a level of detail that enables adequate planning for people with disabilities like my wee pal from the persistent pain group, what the rules are! We've both recently been through PIP renewals, she more recently, and she says she can't face a WCA on top especially without knowing what she's entering into.

(She will be made to migrate. Nothing's changed for her, and she doesn't want to migrate. She's got 'savings' now because a parent died and left her some money. She needs to do stuff to her house but can't organise it yet because she's too ill and doesn't qualify for any organisational assistance now because she's got 'savings' ...)

The last thing she needs is me giving her duff advice. I'm very worried about her.

I agree. The letter drops through your door and you're given no information. Not told that the moment you apply your TC payments will stop. Not told that it will take 5 weeks to receive UC. Not informed of the 16K+ transition etc. The onus is totally on you to do research/find all this out. I can't imagine how stressful this must be for a huge number of people.

I called them yesterday. If you have savings they will implement the tariff of £4.35 per £250 from £6k savings to £16k savings during the transitional year. Anything over £16k is disregarded for a year but after that if you still have it you then lose all UC. The lady on the phone did agree that if you are say chronically ill/disabled and unable to work the extra hours to make the shortfall, you will end up topping income up with savings and then reclaim. I do get they have to draw the line somewhere though.

@whonickedmyusername I was told by the UC line yesterday, that after you claim UC, you will recieve one more TC payment. But someone (maybe you?) Upthread said theirs stopped.

Tax credits stop immediately. You won't receive one more payment unless the payment had already been released and you literally applied for Uc the day before. If someone who was claiming ESA or housing benefit or Income support applied for UC, there is a 2 week run on of those benefits after you've made a Uc claim, perhaps that's where she got confused ! To be honest some of the DWP phoneline advisors aren't very well trained. If you used a service like the help to claim team which the government funds through Citizens advice branches then you would likely get good advice before you apply and they would be able to do a proper accurate calculation regarding what you might expect and how transitional protection works etc.

When’s the best time to apply then? Work out when your payment date is in the last month and apply after that?

or apply on the day of deadline?

@Babyroobs I did use the number on the migration letter.

Also I’ve heard about claimants mor receiving UC because the way their wages works out sometimes it looks like 2 wages received in one month.

I get an earlier xmas wage and then an earlier January one. Then it goes back to end of the month wages.

I get am earlier Christmas wage too. I think further uptrend sone said that thus issue was resolved? Or maybe a different thread.

I’ve been reading the whole thread but didn’t notice anything about wages seemingly paid twice in one month.

Do you just dvd up missing a month of UC?

UC is calculated based on what earnings are reported to HMRC in your assessment period. Two pay days generally applies one month a year to people who are paid four weekly and in that month their Uc award can be greatly reduced or wiped out. In the situation you describe where you are paid early because of Christmas then if it is going to mess up your UC you can ask for that pay to be re-assigned to the next assessment period for the date it would normally be paid. However if you are paid early again in jan, that may not help ! It would depend on assessment period dates. It is called raising an RTI dispute I think and can usually be sorted fairly quickly.

That's really helpful @Babyroobs

Ah ok. So as long as raise it with work coach as a RTI dispute then can be sorted. Helpful thank you.

Is there a better time to apply @Babyroobs ? So just after last TC payment or in the last date stated in migration letter?