What is Universal Credit?
Universal credit is a payment to help with your living costs. It replaces six older benefits:
- Income-based Job Seeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Housing Benefit
- Child Tax Credit
- Working Tax Credit
The Department for Work and Pensions (DWP) is gradually moving people from older benefits to Universal Credit. This is called migration.
If you are affected, the DWP will send you a Migration Notice Letter. This letter gives you a deadline to make your Universal Credit Claim – usually within 3 months.
What should I do if I get a Migration Notice?
1. Read the letter carefully – it gives you important information about when to claim
2. Make your claim online at Universal Credit: What Universal Credit is - GOV.UK
Further information is available online at Universal Credit: for claimants who receive a Migration Notice letter - GOV.UK
Transitional Protection when Moving to Universal Credit
If you are moved to Universal Credit through managed migration (i.e. you receive a Migration Notice from the Department of Work and Pensions), you may be eligible for transitional protection.
This means your monthly income will not be lower at the point you move to Universal Credit, even if Universal Credit normally pays less that your old benefits.
Who can get Transitional Protection?
You may get transitional protection if:
- You receive a Migration Notice from DWP, and
- You apply for Universal Credit by the deadline in the letter, and
- You are eligible for Universal Credit at the time you apply.
If you move to Universal Credit for any other reason (e.g. you choose to claim early, or your circumstances change), you won’t get transitional protection.
What does Transitional Protection Cover?
Transitional protection is a top-up that keeps your Universal Credit payment at the same level as your old benefits when you first move. It is not permanent and will reduce over time when other elements of your Universal Credit increase.
Further information is available online at Transitional protection if you receive a Migration Notice letter - GOV.UK
How Council Tax Support is Affected by Transitional Protection?
If you migrate to Universal Credit and receive transitional protection, your Universal Credit award might be higher than usual. This can affect your Council Tax Support, also known as Council Tax Reduction.
Why?
Council Tax Support is a separate benefit from Universal Credit – it is a local scheme that helps people on a low income pay their Council Tax. It can reduce the amount of Council Tax you have to pay and is calculated based on your actual income, including the full amount of your Universal Credit payment. Our Council Tax Support scheme uses income bands (add link to income bands) work out how much support you are entitled to.
Even if transitional protection is a temporary top-up to stop you losing money when you move to Universal Credit, it still counts as income for Council Tax Support.
What this could mean for you:
- Your Universal Credit income goes up because of transitional protection
- our council tax support goes down because your income appears higher
- So you may need to pay more council tax than before.
Example
Full details of our income banded scheme for working age customers can be found online at Council Tax Support Scheme for Working-Age Taxpayers
Need Help?
If you are worried about how your Council Tax Support is affected Contact Us