Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what funding the Government has allocated for transitional payments for people moving onto universal credit; and by what process claimants will receive such payments.

We recently laid the draft Universal Credit (Managed Migration) Regulations 2018 in Parliament. These will introduce a transitional payment to those eligible claimants who were in receipt of the Severe Disability Premium whilst on an existing benefit and who have already moved to Universal Credit.

As announced in the 2018 Autumn Budget, the income related elements of Employment and Support Allowance and Jobseeker’s Allowance, and Income Support will continue for two weeks after a claim for Universal Credit has been made from July 2020. Claimants will therefore receive one two week run-on payment when being migrated to Universal Credit. Both of these measures are subject to parliamentary approval. These payments are in addition to the 2 week run-on of Housing Benefit, which we introduced in April 2018.

The Government has also committed to ensuring that claimants who are moved onto Universal Credit as part of the managed migration process see no decrease in their benefit entitlement, providing their circumstances remain the same.

The Government will be spending over £3bn on transitional protection over the next 10 years to ensure that claimants who are migrated onto Universal Credit as part of the managed migration process do not experience a financial loss at the point of transition.

Transitional protection will be calculated based on the claimant’s circumstances on the last day of their entitlement to existing benefits. To do this we will make a comparison between the total amount of all relevant existing benefits to which the claimant was entitled at this point and the total amount of Universal Credit to which the claimant would be entitled as calculated based on the same set of circumstances. If the entitlement to the existing benefits is the greater amount then the difference will be awarded as a Transitional Element. When awarded, this Transitional Element will be taken into account with any other applicable Elements to determine a claimant’s Universal Credit award in each Assessment Period.