ESA to UC Managed Migration - Should I purposely pay more rent!

B1AVENGER

Hi,

This may sound crazy but im on ESA, Support Group, Severley Disabled Premiums etc.

I know soon i will be moved to Universal Credit and get transition protection.

I currently only pay a samll rent of £300 which is covered by Housing Benefit.

I know my transitional payment will decrease by any increase in Universal Credit, eroding it away until zero. So long term will be worse off.

So my question is. Should i move to a more expensive property paid for by Housing Benefit upto the maximum local allowed?

Example: i pay £300 rent now, Once on Universal Credit and if i move house that's say £600 rent, id lose that extra £300 in transitional protection.

But if i move now to same local authority, as this isnt a change of circumstances to trigger Universal Credit and get £600 Housing benefit paid first and then be migrated to Universal Credit i'd be £300 better off still in transition protection? minus any further changes of course.

Is this correct?

Thanks.

vikki66

Hi @B1AVENGER

I couldn’t answer that for you, and I don’t think anybody on here could either, but something you’d need to think about - rent increases from the landlord, and how they’d affect your transitional protection.

The more expensive the property the bigger the rent increase when your landlord puts the rent up.

Eg if your rent was £600, and you were given say a 10% increase (which is happening at the moment in private rent) - your rent would then be £660 per month - so £60 increase.

If your rent was £300 (which is low) and it went up 10%, your new rent would be £330, so £30 per month more.

All I’m trying to say is that there’s more to it than just what the rent amount is when you get moved to uc.

Hope it goes well for you, best wishes.

Kimmy87

UC is made up of various elements, one of which is Housing Element for your rent.

I cannot follow your logic as UC HE pays for your rent and you will then pay that money to your Landlord.

B1AVENGER

@Kimmy87 @vikki66

Hi, thanks for the replies.

Maybe im not being clear.

Currently on ESA, Support Group, Premiums etc and Housing Benefit pay my £300 rent

If i moved house locally next week I'd be paid the same ESA, Support Group, Premiums etc and Housing Benefit would pay £600 rent.

I believe thats all fact.

Then say in 9 months i am migrated to Universal Credit.

Id get Standard Universal Credit, LCWRA Element and Housing Element (which would be £600) plus transition protection (however much that may be, lets say its £300)

But if i was migrated to Universal Credit before i moved house. My Housing Element would be £300. Then if i move and new rent is £600, they would give me £600 housing element but then take £300 of it away from from my transition protection.

I hope im making sense.

Meg24

Do you know what your local housing allowance is? You will only get the maximum based on your circumstances for a private rental anyway so there are maximum rates for single people depending on age and only for the amount of bedrooms you need, below a certain age they will only reimburse you for a room in a shared house. Social housing tends to be set at the LHA rates but if you have spare bedrooms you'll have it docked for the bedroom tax.

ricky1040

I really don't understand the logic. Please explain how it would benifet you?

B1AVENGER

Ok, I'll try and make an exampe.

Benefits now are (ESA, Support, Premiums). Not including Housing Benefit which i get separate and my rent is a ridiculously low £300 for a 1 bed flat.

If i was to move next week to a better 1 bed flat for £600 (which is still covered by the local LHA rates) They would pay that no problem, Ive asked.

So id be on all the same benefits just in a better £600 rented flat.

But, if i was migrated to Universal Credit first, in my current flat then my Housing Element for rent would be the same £300.

Then if later i moved flats and my new rent was £600 i would get the £600 rent in Housing Element, but as its an increase in rent they would then just take £300 off my transition protection.

So id be £300 worse off. (basically wiping out the transition protection)

So by moving flats before Universal Credit, They would pay £600 Housing Element to begin with and id keep my transition protection. (or partly at least until another increase occured)

@ricky1040 @Meg24 @Kimmy87 @vikki66

ricky1040

Well if there is a problem with Ur current accommodation and the more expensive one will help you with your life and health. Then ok. But if it's just about the money I think that's a very selfish thing to do.

Meg24

Personally I'd choose to stay in the cheap one in case I ever have to pay it myself in the future, but I wouldn't call you selfish for wanting a nicer place, wouldn't we all!

B1AVENGER

Hi, of course im not saying people should do this just to "gain" benefit.

As your not actually even gaining anything, its just protecting your transitional protection for longer.

My personal situation is dire. I absolutely need to move from my current flat for health reasons. (that's another story).

I have been trying for ages with no real luck.

However after reading recently that all managed migrations will be done from September 2024 to December 2025 im now just thinking the quicker the better.

But is my example correct?

@ricky1040

ricky1040

I understand what h mean. And yea absolutely if it will help Ur situation do it.

ricky1040

Sorry if I sounded judgemental. Just drives me nuts if people do that.

B1AVENGER

No problem @ricky1040

But although i'd not be doing it for any particular gain, in another post of mine you will see im going to be nearly 3k worse off too! (i think) So a double whammy.

I just hope people on legacy benefits realise what a difference theses changes will make to them finacially and possibly housing wise.

I read that some will be better off, some the same and some worse off.

But in the Disabled World i cant see anyone being better off.

vikki66

@B1AVENGER

I understood what you were saying, which is why I replied as I did.

If the figures you give are correct, then yes you’d be able to get your local authority to pay the HB on a new place double the price, and the situation you outlined should apply. Check they’ll give you £600 for a one-bedroom though, as that seems quite high for an area where £300 properties are also available. You’ll also need the deposit and first months rent, which could be about £1,500.

I’m pretty sure nobody, including yourself (or myself), would voluntarily decide to move to a place where the rent was double, or £300 more pcm, knowing they’d be paying it from their own pocket, after the move to uc.

You say your current rent is ridiculously low, like you’re somehow losing out, but you’re actually lucky that private rented accommodation is available at such a low rent, as it wouldn’t be the case in most areas.

As per my previous post, if it’s only your transitional protection eroding that you’re worried about, I’d still seriously think before moving to a property that’s double the rent you pay now.

Private rents have been shooting up, and the more expensive your property the more expensive the rent increase will be - as per that example I already gave.

I had my rent put up this year by £85 pcm, thankfully just before my uc transition, but my HB has never covered my rent, so approx £200pcm per month has always gone to fill the shortfall. I can see it’s going to become more difficult as time passes, because transitional protection means I won’t get any increase next financial year, but my rent will still go up further. The flat I rent is the cheapest property around here, so I don’t have the option to move (or I would’ve already done so).

Are you having a moral dilemma, or just trying to work out how to get the most from the system? If it’s the latter why did you not move before to the £600pcm place? Eg do you like where you’re living?

I’m not asking you to answer me with those questions there - just to think about it yourself.

I’d think you’d be best, if you want to attempt a beat the uc move, to crack on with it asap because your letter might come soon. If it was me I’d contemplate a place that’s cheaper than the available max, for the reason already mentioned.

Best of luck with it.

ricky1040

Yea I too will be moving over at some point. And have looked into the amounts and I will be worse off in time after the errodinf of the protection. Obviously it's not ideal. But I should be able to cope. So long as we don't get absolutely f d over on the pip changes next month.

vikki66

@ricky1040

I had hoped to find somewhere to move to before the uc change, but couldn’t and then my migration letter arrived. Private rents have shot up, and social housing is in crisis, so I’m concerned about the same thing too