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ESA to UC protected transition

Naz4

I have recently had a migration letter to move from ESA to UC. They make it sound all fluffy and easy. Looking into in depth, which required several phone calls, it seems I have a £59 pw transition payment. Not only do I not get an inflation increase in benefit, but any increase to rent has to be paid out. So a static income and paying out money year on year, even though the rent is below the housing allowance. On a spreadsheet, I worked out at 2.4% inflation, i would be on a static income and paying out about £20 something per week for about 9 years, So in effect it's a £59 pw benefit cut, Have I got this wrong? If not, people should be in arms about it. It's **** that people on UC have such a low income as it is, but I'm not a commie to have to take another hit, austerity already did that with inflationless benefits for several years. I am already fairly low in mood, this is the icing on the cake, and I think I'm not going to accept the transition even if it means no more benefits.

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Naz4

Hi Ranald. Thank you for the reply. At the point of change it's all the same. From what I've been told, I can ask for rent to be paid to landlord (council) and have fortnightly payments. So in theory it's the same. Until the rent increases (have to be paid out my income) and being on a static income for 9 nine years or so. Whichever way you look at it, it's a £59 cut in benefit. I don't think my benefit configuration is unusual, so it's the same for thousands others, but I suspect they don't realise it's a benefit cut. I had to force a DWP employee to admit it to my face, over the phone.

Naz4

Thank you for your experience! Maybe I am wrong, but having spoken to DWP and a begrudging admission it's a benefit cut I don't think I am.

Naz4

Sorry Ranald I didn't answer your question. My ESA is just income based, as after my health deteriorated after a head injury I could only do low paid jobs, and eventually have been reliant for quite a few years now. My ESA is currently £240.50 pw, and my housing is in a cheaper area at £84pw. The only bit I'm not 100% on is the transition payment amount, but I'm fairly sure I was told it's £59 pw. I put these figures in a spreadsheet, and worked out, as said, it takes 9 years for the transition payment to be eroded by housing and income to hand. As housing costs increase, it erodes the transition payment but you don't get anymore money. I worked out (at uniform 2.4% inflation) in 9 years I be on a static £240.50, have to contribute £15 pw to housing so that's £225 as income effectively. If on the old ESA, in 9 years time that £240 pw would be £290 at 2.4%. So in reality, it's a 290-225=£65 per week cut in income until UC starts to increase again. That's quite a smash on £240 per week.

Kimi87

The reason is no premiums are paid under Universal Credit.

Those like myself who are on UC but would otherwise qualify for the SDP under the legacy system (I live alone and was awarded PIP 6 months ago) never see their income increase.

Whereas your higher income is effectively frozen until the UC rates catch up to your Transitional Protection amount.

It seems unfair either way doesn't it. Sadly that's the way UC has been designed.

Naz4

I am aware that those on legacy benefits are better off than those on UC, and it seems the UC rates and system are pretty rough. Through austerity under the tories, benefit rates were frozen for years, so they've already had a go at cutting. I was better off years ago when I first got benefits on a lower PIP rate. Why do you not get an inflation related increase in UC Kimmy, that sounds really unfair? I had a head on car crash with a drunk driver, than year later was randomly assaulted on the street, so two head injuries in a short space of time. It's annoying in my case that I had my life changed beyond my control, then to have to constantly have support reduced by the government. I got poor compensation by todays standards for the car crash, then pretty much nothing for the assault because my health had already deteriorated.

Kimi87

I wasn't clear enough sorry, I do get the inflation related increases, just nothing extra for PIP & living alone, under the old system I would have been awarded SDP.

Naz4

Ah I get it Kimmy. The system has been very unfair in that regard. When UC was launched, it was announced like it is a decent thing. All it seems to me was a massive benefit cut. Instead of us legacy claimants having to take a cut, a Labour government should have had a more targeted increase for those most in need on UC. Instead, they've just accelerated the cuts. Even someone like MP's on £91k plus expenses would whinge at a real terms £3400 cut, but people on £240 per week ie. £12,500 pa (excluding housing, £16,800 including) are supposed to shut up and accept it.