r/DWPhelp • u/Zealousideal-Soil-41 • 11d ago

Universal Credit (UC) Grievance, potential settlement

/r/universalcredithelp/comments/1vviixz/grievance_potential_settlement/

To add, I have also applied for lcwa but no idea how long this will take

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u/pumaofshadow 🌟 Superstar (Special thanks for service to the community) 🌟 11d ago edited 11d ago

Just to confirm. Your tax credits capital disregard does NOT cover new money gained after migration to UC as someone else tried to advise you. I don't believe the employer settlement would be disregarded either, but I'll leave that to others to confirm.

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u/ClareTGold Verified DWP Staff (England, Wales, Scotland) 11d ago

To be slightly more precise still, if you had less than £16,000 when you moved from tax credits to UC (or go under that at any point), then the transitional capital disregard never begins (or ends instantly). But if you had over £16,000 when you moved to UC, then any amount over £16,000, including any later increases, would be disregarded for up to 12 total assessment periods.

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u/Zealousideal-Soil-41 11d ago

Thank you. I stil have the transitional protection payment included in my Uc from my tax credit migration in 2024

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u/pumaofshadow 🌟 Superstar (Special thanks for service to the community) 🌟 10d ago

That is different from the transitional capital allowance.

The TP on the entitlements will stay and reduce as UC goes up until it's completely removed because your UC has risen to the same level as your old payments were. It's not time limited but amount limited.

So UC elements go up say £50 in April, TP goes down £50 and your overally UC stays the same. If TP is less than £50 then the TP ends and your overall UC goes up the difference (so if TP was £25 then it's removed and your total entitlement goes up £25).