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

The DWP has issued an update on the rules around increasing people's Universal Credit

Thousands of Universal Credit recipients could be in line for additional funds on a temporary basis to prevent a sudden drop in income this autumn. The extra amounts even surpass what they would usually receive in their monthly payments - and it's all part of the ongoing overhaul of the benefits system.

At present, just under seven million people are on Universal Credit. This number is increasing as claimants are transitioning from older forms of welfare support. These legacy benefits include tax credits, Income Support, Housing Benefit, income-based Jobseeker's Allowance and income-related Employment and Support Allowance.

As part of the 'managed migration' this autumn, thousands more individuals are being 'transitioned'. Households are receiving letters and given a three-month window to apply for Universal Credit before their existing benefits cease.

Now, the Department for Work and Pensions (DWP) has issued an update outlining the rules for increasing people's Universal Credit during this transition.

It states that an extra amount, known as a transitional element, can be paid under certain conditions and has clarified how this operates. The DWP explains that the transitional element can be added if someone has received a Migration Notice letter and has moved to Universal Credit by the specified deadline date, reports the Mirror.

This element essentially serves as a bridge between what individuals were previously receiving in benefits and what they would be entitled to under Universal Credit. DWP figures indicate that by the end of 2025, when Universal Credit is fully implemented, approximately 2.2 million households are projected to receive transitional protections to prevent their benefits from falling below previous levels.

In addition, it's expected that around 1.2 million families will keep their current benefit amounts. Meanwhile, an estimated 3.8 million could see their payments increase under Universal Credit.

The DWP guidance clarifies: "When a claim is made and verified, the transitional element is calculated using a Universal Credit amount that's based on your known circumstances from the day before your claim. This amount is referred to as the indicative Universal Credit award.They further explained: ".

They further elaborated: "At this point, the transitional element is the difference between the indicative Universal Credit award and your previous legacy benefit amount. It aims to protect your benefit entitlement at the point of moving to Universal Credit."

This transitional element relies on information provided by claimants in their Universal Credit applications. It takes into account factors such as employment status, family structure, income, savings and investments, children and childcare costs, potential disabilities or care responsibilities, and details of any benefits already being received.

Officials have described the method for working out who can get Universal Credit as thorough. The system scrutinises data from the Department for Work and Pensions (DWP), HM Revenue and Customs (HMRC), and local authorities.

Particularly in situations involving Housing Benefit, the DWP takes into account potential benefit cap reductions and might include a transitional element to lessen any lessening of benefits, bringing Universal Credit payments in line with previous benefit levels.

The purpose of this transitional protection is to cushion individuals moving over to Universal Credit from experiencing a drop in income, ensuring they retain an amount equal to what they were previously on. Notably, this safeguard does not alter with the April increase in Universal Credit, though it could lead to a lower transitional sum.

The DWP has signalled: "If your circumstances change after you've made your claim, any transitional protection you receive may stop."