Universal credit: Transitional protection

Transitional protection – managed migration to UC
Transitional SDP element
Transitional protection – migration to pension credit

Transitional protection managed migration

The Government have said that anyone that is ‘managed migrated’ over to Universal Credit in the formal exercise by DWP will not lose out in cash terms at the point they are moved where their circumstances remain the same. To do this, the new UC award (upon managed migration) may include an additional amount to broadly make up the difference between what the claimant was receiving in total from legacy benefits (for example tax credits)on the last day of their award and the amount they would have received if they had claimed universal credit on that day. This UC amount is called the ‘indicative’ UC amount – but it may not be the same as the actual UC award. This means that some people may still end up worse off on UC, even with transitional protection and others may be entitled to transitional protection even though their UC award is higher than legacy benefits.  

The legislation sets out how the transitional element is to be calculated. There are also rules about how the transitional element is reduced over time and how and when it ends.

Some of the entitlement conditions for universal credit are different to legacy benefits and there is also transitional protection to cover some of these. These are:

There is more information about transitional protection in our managed migration section.

Transitional SDP element

Since 27 January 2021, people who receive a severe disability premium (SDP) with a social security benefit (or have been receiving a SDP and continue to meet the criteria for SDP but the benefit has ceased in the previous month) have not been prevented from making a new claim for UC and, consequently, can no longer make a brand new claim for legacy benefits.

The transitional SDP element is to be included in the calculation of the UC award for those SDP recipients who make a new claim for UC from 27 January 2021. However, the transitional SDP element is liable to erosion over time in the same way as other transitional protection elements.

The transitional SDP element is not payable in cases where a transitional element is already being paid for claims made prior to 27 January 2021 and is not payable where the SDP recipient is joining the household and making a new joint UC claim with an existing UC claimant.

Following a High Court decision which ruled that the difference in treatment between people who started to claim UC and those still on their legacy benefits was unequal, further regulations introduce an additional amount of transitional SDP element for certain people making new claims for UC from 14 February 2024. It is understood that DWP are looking into arrangements to make up the shortfall for people who meet the criteria for this additional amount but who have already started claiming UC by 14 February 2024. Further details about the new transitional amount are set out in the DWP’s decision makers guidance ADM 1/24

Transitional protection - migration to pension credit

Some tax credit claimants who have reached state pension age will be issued with a tax credits closure notice and invited to make a claim for pension credit and some will be issued with a migration notice and invited to claim universal credit.  Some transitional protection may be available in both scenarios. More information about tax credit claimants who have reached their state pension age and managed migration is available in our pensioners  section. 

Last reviewed/updated 27 June 2024