DWP could hand thousands of Universal Credit claimants extra money this autumn

The Department for Work and Pensions has issued an update outlining the rules erstwhile transitioning from benefits specified arsenic lodging payment onto Universal Credit

Thousands of Universal Credit recipients could beryllium fixed further funds for a impermanent play to forestall a abrupt driblet successful income this autumn. The other amounts adjacent surpass what they would usually person successful their monthly payments - and it's each portion of the continued overhaul of the benefits system.

Currently, conscionable nether 7 cardinal radical are connected Universal Credit. This fig is rising arsenic claimants are switched from older forms of payment support.

These bequest benefits see taxation credits, Income Support, Housing Benefit, income-based Jobseeker's Allowance and income-related Employment and Support Allowance. As portion of the 'managed migration' this autumn, thousands much individuals are being 'transitioned'.

Households are receiving letters and fixed a three-month model to use for Universal Credit earlier their existing benefits cease. Now the Department for Work and Pensions (DWP) has issued an update outlining the rules for expanding people's Universal Credit during this transition.

It states that an other amount, known arsenic a transitional element, tin beryllium paid nether definite conditions and has clarified however this operates. The DWP explains that the transitional constituent tin beryllium added if idiosyncratic has received a Migration Notice missive and has moved to Universal Credit by the specified deadline date.

Essentially, this constituent bridges the spread betwixt what radical were receiving connected their aged benefits and what they would beryllium owed to person successful Universal Credit, reports Birmingham Live. DWP statistic suggest that by precocious 2025, arsenic Universal Credit is afloat rolled out, astir 2.2 cardinal households are expected to person transitional protections to forestall their benefits from dipping beneath erstwhile levels.

Alongside this, astir 1.2 cardinal families are anticipated to support their existent payment amounts. And 3.8 cardinal could spot accrued payments nether Universal Credit.

The DWP guidance states: "When a assertion is made and verified, the transitional constituent is calculated utilizing a Universal Credit magnitude that's based connected your known circumstances from the time earlier your claim. This magnitude is referred to arsenic the indicative Universal Credit award.

They further explained: "At this point, the transitional constituent is the quality betwixt the indicative Universal Credit grant and your erstwhile bequest payment amount. It aims to support your payment entitlement astatine the constituent of moving to Universal Credit."

This transitional constituent hinges connected details provided by claimants successful their Universal Credit applications. It incorporates factors specified arsenic enactment status, household composition, income, savings and investments, children and childcare costs, imaginable disabilities oregon attraction responsibilities, and specifics of immoderate benefits already being received.

The method for determining eligibility for Universal Credit is comprehensive, officials say. It involves checks against information from the Department for Work and Pensions (DWP), HM Revenue & Customs (HMRC), and section councils.

This is particularly truthful successful cases similar Housing Benefit. After considering immoderate payment headdress deductions, DWP whitethorn use a transitional constituent to mitigate immoderate simplification successful benefits, aligning Universal Credit with erstwhile payment amounts.

This strategy of transitional extortion aims to forestall income nonaccomplishment for those transitioning to Universal Credit, maintaining a level accordant with their erstwhile benefits. This remains unaffected by the April emergence successful Universal Credit, resulting successful a alteration successful the transitional portion.

The DWP has highlighted: "If your circumstances alteration aft you've made your claim, immoderate transitional extortion you person whitethorn stop."