DWP update on expanding Universal Credit top-up scheme

The Department for Work and Pensions (DWP) has issued a statement after being asked if a Universal Credit top-up scheme could be extended to more people.

Labour MP Fabian Hamilton asked the DWP if there had been any assessment of expanding transitional protection to include couples who form a household which becomes eligible for the benefit.

He asked the question in relation to how such a policy could reduce overall welfare spending and free up social housing.

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DWP minister Sir Stephen Timms provided a response from the Government.

He said there had been so such assessment. Mr Timms went on to explain how transitional protection works: "Transitional protection was introduced as part of the Move to Universal Credit journey to ensure legacy benefit customers maintain the same level of entitlement on moving to Universal Credit at the point of transition.

"Transitional protection is considered for both single and couple households that manage migrate to Universal Credit.

"It is not extended to customers in receipt of the transitional element that have a significant change of circumstances or where a couple forms and makes a new claim to Universal Credit."

People on six older benefits, known as legacy benefits, have been gradually moving over to Universal Credit.

As moving across could result in a drop in your payments, the transitional protection scheme guarantees you continue to get your benefits at your previous rate.

Mr Timms also said in his response: "The Universal Credit (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019 made provision for transitional protection. DWP has no plans to amend the regulations to extend transitional protection to include couples who form a household after they have moved to Universal Credit."

MPs recently approved a bill making key changes to Universal Credit payment rates.

The legislation means the standard allowance for Universal Credit will go up above inflation for the next four years.

But there will be cuts to the health-related top-up some claimants get, with the top-up for new claims to be limited to £50 a week.

How much is the standard allowance for Universal Credit?

These are the current monthly standard allowance rates for Universal Credit:

• If you’re single and under 25 - £316.98
• If you’re single and 25 or over - £400.14
• If you live with your partner and you’re both under 25 - £497.55 (for you both)
• If you live with your partner and either of you are 25 or over - £628.10 (for you both).