Transitional protection / benefits cap

vikki66

Hi,

Hope everybody is well and has had a good day.

Could anybody tell me please about transitional protection, as what I’ve heard is confusing.
I understand that I’ll initially receive TP, but that it will gradually be ‘eroded’ - though I’ve just read on here that TP only lasts a year.

What would happen if I suddenly got a council property within the same area, or had an increase in my PIP, or some other change of circumstance - does this mean the benefit cap would then apply?

I’m as confused about the benefit cap as about TP

Thanks to anybody who can advise

poppy123456

Transtional Protection lasting for 1 year only applies to those migrating from Tax credits that have more than £16,000 in capital. For everyone else, how long it lasts for will be different for everyone. For some it may only last a few months, for others it could last years.

For the benefit cap, if you're claiming a disability benefit such as PIP then you're not affected.

The benefit cap means there's a maximum amount of benefits you can receive each week. Even if you're entitled to more, your money will be reduced down to that level.

PIP isn't part of UC so if that increased it will have no effect.

With TP if you're entitled to any, if other elements of UC increase or you become entitled to other elements then the TP decreases by the same amount until such a time it will erode completely.

vikki66

Thanks @poppy123456

I’ve been trying to read, but my brain is completely foggy for so many reasons that I’m not retaining any new info long enough to make sense of it.

I’ve no capital, but do have some pip, so I’m assuming no benefits cap and (if no sudden unexpected changes) that when benefits rise next year I won’t get an overall rise because there will be a deduction from UC.

Thanks 🤩

poppy123456

You're welcome. Any PIP award excludes you from the benefit cap. There's also other benefits that exclude you such as ESA Support Group, claiming carers allowance.

Yes, you are not affected by the benefits cap. If your UC includes Transitional Protection, if benefits increase next year you won't see a reduction in your UC. It means your TP decreases so you won't be any better off if your TP is more than the benefits increase. To put it more simple your UC will be frozen until TP erodes completely.

vikki66

Thanks poppy123456

When UC first came out I was hearing only terrible things about it.

I guess to be guaranteed the same amount initially is as much as can be expected/ hoped for in the here and now.