The Department for Work and Pensions (DWP) has outlined the calculation process for the transitional element, an additional payment designed to assist individuals moving to Universal Credit. This element forms part of transitional protection, available to those who receive a Migration Notice letter and transition to Universal Credit by their specified deadline.
The transitional element is determined by assessing the difference between an 'indicative Universal Credit award' and the claimant's previous legacy benefit amount. The indicative award is an estimation based on circumstances from the day before the Universal Credit claim is made. Information used in this calculation includes employment status, household income, savings, and details about children, disabilities, or caring responsibilities.
The benefit cap is applied to the indicative Universal Credit award and is also factored into the transitional element calculation. Certain groups, such as those of State Pension age, are not subject to the benefit cap. Data from DWP benefit systems, local councils for Housing Benefit, and HM Revenue and Customs (HMRC) for tax credits are used to verify claimant information.
For couples living together, a joint claim is required, and both partners' circumstances are used in the calculation. However, if partners live apart and previously claimed tax credits as a couple, they will be treated as two separate households and will not be eligible for the transitional element.
If a child is not eligible for the child element of Universal Credit, even if Child Tax Credits were previously received, the transitional element will not cover this difference in entitlement. Individuals moving from income-related Employment and Support Allowance (ESA) will have this included in the transitional element calculation. Those also receiving contribution-based ESA will transition to New Style ESA, which will be deducted from their Universal Credit amount.