Richmond, Kingston &
West London M.E. Group

BENEFITS UPDATE AUTUMN 2025

 

PERSONAL INDEPENDENCE PAYMENT (PIP)

AND UNIVERSAL CREDIT (UC)

As I reported by email in July, the government’s original proposals for cuts to PIP and UC were substantially watered down in the face of opposition from MPs.  The rules for claiming PIP remain unchanged for now, although a review is due next year.  Also unchanged, for existing claimants, is the health element of UC, with drastic cuts having been scrapped, and the health element (£97 per week) uprated annually for inflation.  However, new claimants after April 2026 will lose out.  For most of them, the health element of UC will be reduced by almost 50% to £50 per week, and this amount will be frozen in money terms until 2029/2030.  Exceptions are those meeting the severe conditions criteria, which are extremely hard to satisfy.

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The standard rate of UC will rise by 4.5% above inflation by 2029/30. This is a better outcome than originally anticipated but still unsatisfactory – patently unfair on new UC claimants after April 2026.  Other losers will be claimants of the limited capability for work element (new claims no longer possible since 2017), which is now frozen at 2025/2026 rates.  Government sources suggest that 100,000 additional people will be left in poverty as a result of the changes.  According to Citizen’s Advice some 730,000 disabled people will lose £3,000 per year.

 

MANAGED MIGRATION TO UC

While the furore over PIP and UC has dominated headlines, another major issue continues: managed migration of claimants of means-tested benefits to UC.  The deadline for the issue of migration notices, as noted last time, was brought forward to 30 September 2025. 

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TRANSITIONAL PROTECTION

Transferees to UC will benefit from transitional protection, designed to ensure that that no claimant receives less in money terms upon migration to UC than they did before. 

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On the basis of information they hold, the DWP calculate a ‘total legacy amount’, which is the sum of the legacy benefits you are receiving on your migration day (the day before you claim UC) and compare this to an ‘indicative Universal Credit amount’ based on your circumstances on that day.  If the former exceeds the latter - which will not be the case for everyone - you will be entitled to a transitional element (TE). 

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Transitional protection is not as protective as all that.  While you lose no income at the point of transfer, any increase in your entitlement to UC, whether resulting from a change in your circumstances or from routine annual uprating, is deducted from your TE.  (There is an exception for childcare costs.)  So your UC will remain the same in money terms until your TE has eroded to zero.  There are a few major changes in circumstances that will end your transitional protection; these include splitting up from a partner if you have made a joint UC claim.  But transitional protection will not end if you stop getting a disability benefit, or if someone starts getting carer’s allowance or the carer’s element of UC for looking after you. See turn-2us info on transitional protection

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PROBLEMS THAT HAVE ARISEN

Problems have related to both underpayments and overpayments, and also to error in the calculation of the transitional element. 

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Underpayments

Welfare rights advisers were warning the DWP from May onwards that the limited capability for work-related activity element was not reliably being included in the first UC payment of claimants of income-related employment and support allowance (ESA), and they asked the DWP to pause migration until this issue had been resolved.  The DWP refused, and now claim that the problem has been sorted out.  But do check that this important item has been included in your UC award.

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Overpayments

Overpayments usually arise because of delays in ID verification.  Entitlement to UC begins when a claim is made.  A ‘stop notice’ will then be issued in respect of legacy benefits, with, in most cases, a two-week run-on.  But it is usual for a stop notice to be delayed until the claimant’s identity is confirmed, which may take weeks if a claimant needs a home visit. So there can be an overlap where legacy benefits continue to be paid (beyond the 2-week run-on) after entitlement to UC has started.  UC overpayments

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In these cases, the overpaid legacy benefits should be deducted from a claimant’s UC.  The problem is that whether or not this has already happened, claimants are receiving letters informing them that there has been an overpayment, and they are left confused as to whether they need to return money to the DWP.  

Overpayment notifications should make it clear whether the DWP has already recovered the overpayment, and, if not, how it will be recovered.  If you are uncertain, check your position before attempting to repay the DWP.  Once you’ve overpaid them it can be hard to get the money back.

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Miscalculation of transitional element (TE)

Welfare rights advisers have been complaining of lack of transparency in the DWP’s calculation of the TE; of copious errors; and of resistance on the part of the DWP to rectifying these errors when they are pointed out.

 

Should you doubt the DWP’s calculations: it can be difficult to calculate your TE yourself and online benefit calculators do not always give an accurate result for this.  Citizens Advice Help To Claim staff (0800 144 8 444) are specially trained in calculating the TE. CPAG have a tool for requesting a breakdown of the TE from DWP.

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POINTS TO NOTE

Things not to worry about.  You do not have to provide a sick note or undergo a new WCA on migration to UC.  If part of your pre-migration ESA is contributory, you will be required to agree a separate claimant commitment in respect of that portion as it is rebranded New Style ESA (although they are in practice the same thing) – but that should be a simple process carried out by phone.  PIP and DLA are unaffected by migration to UC.

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If you claim housing benefit: make sure your tenancy agreement is up to date before migration.  On migration, the amount you receive will be based on the rent specified in your tenancy agreement, and this may be far less than you are now actually paying.  You may want to request a new tenancy agreement.

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Council Tax Reduction: council tax is not administered by the DWP and policy varies from council to council.  You should inform your local council when you claim UC.  Unfortunately many people are finding they get less support after migration than they did previously.  At time of writing it seems possible that some people whose UC includes a transitional element are being overcharged council tax in error and that this will be rectified.  Hopefully the position will soon be clearer.

DWP's own research shows anxiety and confusion amongst people going through the process of migration to UC.   Benefits and Work have issued a useful 58-page guide on migration from ESA to UC which R,K & WL ME Group can send you. Find out more and order guide. 

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AND FINALLY –and you’ll find it really hard to believe this one - DWP research has established that applying for PIP can cause stress in claimants with anxiety  Who would have guessed?