Switching to Universal Credit (income-related ESA Payment Decrease?)

tcellmutation

Hello everyone

I am 35 single male currently receiving income-related ESA in the support group on legacy benefits this also includes the severe disabiliby premium. I am also receiving PIP at the enhanced rate which is ongoing. I live alone with no carer.

I am aware that I will stay on legacy benefits until 2024 unless my circumstances change (or before if moving to a different council area or government policy change)

I am also aware that severe disability premium doesn't exist on universal credit but I will get a top-up.

My questions are

Will the top-up I get on universal credit cover the full amount of what the severe disability premium was?

I have also been told that because I am receiving income-related ESA and not contribution-based ESA that my universal credit payments will decrease if I do decide to move to move to a different council area which will trigger the change. Is this true?

I have clarified all of the above just incase the other disability benefits i am currently receiving somehow impact the income-related ESA payment vs the contributed-related ESA payments on universal credit.

Thanks

calcotti

tcellmutation said: Will the top-up I get on universal credit cover the full amount of what the severe disability premium was?

I have also been told that because I am receiving income-related ESA and not contribution-based ESA will my universal credit payments decrease if I do decide to move to move to a different council area?

I have clarified all of the above just incase the other disability benefits i am currently receiving somehow impact the income support related ESA vs the contributed ESA payments on universal credit.

I don’t know what you mean by contributed ESA payments  on UC.

Broadly the SDP compensation on UC will still mean that your UC is likely to be less than your ESA. However if you stay on ESA until you are manage migrated you will get transitional protection which means that your initial UC award will match your legacy benefits.

However the value of the transitional protection or SDP transition will erode over time if other UC elements increase which effectively means that a UC award with transitional protection is frozen for several years (until the protection is fully eroded).

https://www.entitledto.co.uk/help/Transitional-protection-Universal-Credit

tcellmutation

calcotti said:

tcellmutation said: Will the top-up I get on universal credit cover the full amount of what the severe disability premium was?

I have also been told that because I am receiving income-related ESA and not contribution-based ESA will my universal credit payments decrease if I do decide to move to move to a different council area?

I have clarified all of the above just incase the other disability benefits i am currently receiving somehow impact the income support related ESA vs the contributed ESA payments on universal credit.

I don’t know what you mean by contributed ESA payments  on UC.

Broadly the SDP compensation on UC will still mean that your UC is likely to be less than your ESA. However if you stay on ESA until you are manage migrated you will get transitional protection which means that your initial UC award will match your legacy benefits.

However the value of the transitional protection or SDP transition will erode over time if other UC elements increase which effectively means that a UC award with transitional protection is frozen for several years (until the protection is fully eroded).

https://www.entitledto.co.uk/help/Transitional-protection-Universal-Credit

 Thank you. I'm still at a loss. This is far to complicated for someone with inflammation on the brain ?

calcotti

You could use a benefit calculator to compare your UC entitlement with your existing entitlement. Perhaps that will give you a clearer idea - just bear in mind that UC currently has an extra £20/week which is due to be removed in October.

tcellmutation

calcotti said:

You could use a benefit calculator to compare your UC entitlement with your existing entitlement. Perhaps that will give you a clearer idea - just bear in mind that UC currently has an extra £20/week which is due to be removed in October.

 Now that I do understand ? How long has this £20 a week been active?

tcellmutation

Just found out. Since last lear. I had no idea. That quite a lot of money to not get presuming I have been better off on legacy benefits with all of the current benefits I am currently receiving. Ah well, you win some you lose some. Lost my health. What's £20 a week? ?

calcotti

tcellmutation said:

calcotti said:

You could use a benefit calculator to compare your UC entitlement with your existing entitlement. Perhaps that will give you a clearer idea - just bear in mind that UC currently has an extra £20/week which is due to be removed in October.

 Now that I do understand ? How long has this £20 a week been active?

For the last year, in response to COVID, due to end in October.

tcellmutation

calcotti said:

tcellmutation said:

calcotti said:

You could use a benefit calculator to compare your UC entitlement with your existing entitlement. Perhaps that will give you a clearer idea - just bear in mind that UC currently has an extra £20/week which is due to be removed in October.

 Now that I do understand ? How long has this £20 a week been active?

For the last year, in response to COVID, due to end in October.

https://www.youtube.com/watch?v=IGyWq5i5r-0

The chap in the above video mentions that people moving to universal credit will go without money for up to if not 5 weeks? They can get a crisis loan but will need to be paid back?

What the flipper?

calcotti

UC is calculated on a monthly basis and payment is made a week after the end of the month.The first UC payment is therefore received one month and one week after the date of claim. A UC advance can be requested but has to be paid back by deduction from the following payments over a maximum of 24 months.

if moving from legacy benefits these (except for Tax Credits) continue for two weeks after the date of UC claim so there is some overlap.

calcotti

Returning to your original question.

I infer your current ESA payment with SDP is £198.60/week. I calculate that if you ‘naturally migrated’ to UC now you would get the equivalent of £201.95/week (including SDP transitional element of £120/month). However this includes the £20 Covid uplift so would drop to £181.95 in October.

If you claim Housing Benefit then UC would also include help with rent which is likely to match the HB.

tcellmutation

calcotti said:

Returning to your original question.

I infer your current ESA payment with SDP is £198.60/week. I calculate that if you ‘naturally migrated’ to UC now you would get the equivalent of £201.95/week (including SDP transitional element of £120/month). However this includes the £20 Covid uplift so\ would drop to £181.95 in October.

If you claim Housing Benefit then UC would also include help with rent which is likely to match the HB.

Thanks @calcotti that's a great help. Really appreciate it.

Matt

tcellmutation

One thing that did catch my eye tho was that I can be contacted at anytime to move over to UC even if my circumstances haven't changed.

calcotti

tcellmutation said:

One thing that did catch my eye tho was that I can be contacted at anytime to move over to UC even if my circumstances haven't changed.

Not true at the moment. That will only be true when managed migration starts - currently it is suspended.

tcellmutation

I've decided to stay on legacy benefits. Unless i really want to move to a different area, but can't see that happening for the foreseeable future. Moving to UC seems like such a hassle. I think there will be another carrot or two from now until 2004 for those on legacy benefits. 

calcotti

tcellmutation said:.. I think there will be another carrot or two from now until 2004 for those on legacy benefits. 

Ever the optimist!

tcellmutation

calcotti said:

tcellmutation said:.. I think there will be another carrot or two from now until 2004 for those on legacy benefits. 

Ever the optimist!

Keeps me going ? Hope is all we have