Transitional Protection is not available to anybody yet. When it is available, it will only be for some people. Check the What is Universal Credit (UC) transitional protection? page of this guide for more information about who can get it.
If you can get it, you may receive Universal Credit transitional protection until your Universal Credit award increases to reach the same amount you were receiving from the benefits it replaced, or until your Universal Credit entitlement decreases to nothing, or until you have a significant change of circumstance.
Your Universal Credit entitlement increases
If you have an increase in your Universal Credit entitlement, perhaps due to a fall in income, the birth of a child, or because of an annual increase in the rates for Universal Credit, the increase in your Universal Credit entitlement will be offset by a reduction in your transitional protection amount. This will continue until your transitional protection amount is reduced to nothing.
Jane and Dave currently receive £1100 per month from the benefits to be replaced by Universal Credit but their Universal Credit entitlement is only £1000 per month.
They are part of the managed migration onto Universal Credit so they receive a transitional protection amount of £100 per month to top up their Universal Credit so they are not worse off.
The following April the Universal Credit rates are increased so their Universal Credit entitlement goes up to £1020 per month.
They only need a transitional protection amount of £80 now to top them up to their previous benefit income of £1100 per month.
Although their Universal Credit entitlement has gone up £20, their transitional protection amount is reduced by £20 so they still receive £1100 per month.
They won't see a rise in their income from Universal Credit until their Universal Credit entitlement becomes more than £1100 per month and their transitional protection amount reduces to nothing.
Your Universal Credit entitlement decreases
If you have a decrease in your Universal Credit entitlement, for example because of an increase in your earnings, your transitional protection amount will not be reduced straight away. This is to make sure that work incentives are protected.
Your transitional amount won't be reduced until your Universal Credit entitlement falls to £0. Even then you won't lose all your transitional protection amount at once, it will be removed at the set taper rate, currently 65%. This means you will lose 65p of your transitional protection amount for every £1 you earn.
Significant change of circumstance
If you have a significant change of circumstance which affects your Universal Credit claim you will lose your transitional protection amount immediately.
These significant changes are:
- a partner leaves/joins your household
- your earnings drop beneath the level expected of you in your claimant commitment (for three months in a row)
- your Universal Credit award ends
- you or your partner stop work