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UC migration rent increase difficulty

  • HWstockport benefits
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4 days 14 hours ago #305317 by HWstockport benefits
UC migration rent increase difficulty was created by HWstockport benefits
Hello one of our members has had to migrate to UC from IRESA and tax credits. There have been a lot of problems and errors by UC to date. This was finally settling down, but since their rent increase came into effect on 7th April their monthly net payment has payment has gone down by £15.34 per month. I’ve queried this with UC and they say it is because the rent has gone up. They have implemented the rent increase, & standard allowance has gone up, as has LCWRA amount in accordance with annual increases, as expected transitional protection has gone down, but by more than those increases. What they have done is matched her total gross payment before deductions to the ESA payment, but because the rent has gone up the net payment has consequently gone down, even though they don’t suffer any bedroom tax deduction as they’re on enhanced PIP. Does the transitional protection not apply to increase the net payment, is it only the gross payment before deductions which has to match what was paid before , as if so, this is going to result in an effective decrease year on year? Thanks in anticipation, Rachel

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3 days 22 hours ago #305350 by David
Replied by David on topic UC migration rent increase difficulty
Hi HWstockport benefits

What are the deductions? The Transitional Element is calculated from the full Legacy amount before deductions.

David

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1 day 7 hours ago #305488 by HWstockport benefits
Replied by HWstockport benefits on topic UC migration rent increase difficulty
Thanks David, the deductions are for water payment and water arrears plus her rent in full- the increased amount. The figures are:
Standard allowance increased from 393.45 to 400.14;
Rent increased from 463. 17 to 478.17;
LCWRA increased from 416.19 to 423.27;
TP decreased from 406.95 to 378.18;
Total entitlement before deductions static at 1679.76;
Deductions:-
Water payment static at 39.28 & water arrears deduction increased from 19.67 to 20.01;
Rent payment increased from 463.17 to 478.17;
Total deductions increased from 522.12 to 537.46;
Total after deductions decreased from 1156.74 to 1142.30
So basically although they’ve increased her rent payment and allowances, the corresponding reduction in her TP means she receives less net, and is effectively having to cover the rent increase herself, the slightly increased water payment accounts for only a few pence of the increase. Is this correct? Many thanks again, Rachel

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21 hours 30 minutes ago #305495 by David
Replied by David on topic UC migration rent increase difficulty
Hi HWstockport benefits

Firstly I don't know if you are aware that Managed Migration cancels all existing Third Party Deductions. These include deductions for Utilities, Court Fines and Council Tax. They need to be set up again with the creditor.
UC was designed to make a reduction in Benefits. The Tory government liked to do this insidiously with cuts to the LHA so that claimants had to spend food money on rent. Hence the huge rise in Food Banks under the Tories. So it was intentional that any rent increase after Migration would erode TP and the claimant would be worse off than under the old Legacy Benefits. Unless this change happened during the first Assessment Period.
Would this be an explanation. If not we will have to look at the Legacy Indicative amount and see if that is correctly used in calculating the Transitonal Element.

David

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20 hours 53 minutes ago #305497 by HWstockport benefits
Replied by HWstockport benefits on topic UC migration rent increase difficulty
Hi David, I had a horrible feeling that was the case in terms of the year on year reduction with rent increases. I didn’t know about the debt deductions being cancelled. They certainly weren’t so we’ll look into this with her. Unfortunately, she was migrated last October so it is way beyond the first assessment period. I’ve never been able to get details of the calculation of her TP – after an initial complaint when they told her she had a minus entitlement to UC (!) I she did get a response with a letter uploaded apparently with a breakdown, but it was uploaded in a format that was impossible to open and we’ve never been able to get them to send a fresh copy, but I will request that again now if that is what you need – can you please let me know what information is needed to check that and I will obtain it. Very many thanks again, Rachel Rees.

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16 hours 30 minutes ago #305516 by David
Replied by David on topic UC migration rent increase difficulty
Hi HWstockport benefits

You can get historical information from the UC account if you follow the instructions below--https://cpag.org.uk/welfare-rights/tools-templates/welfare-rights/tools-templates/getting-claim-information-and-statements-your-online-universal-credit-account

As they are refusing to supply you with the essential documents you can request them via a SAR Subject Access Request. Try phoning them and requesting the TP document under a SAR. Or else you can do it online--
secure.dwp.gov.uk/personal-information-request/name

You will need to know the total Legacy payments including Tax Credits in October and also the October UC Indicative amount.

David

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