If you would get less money under Universal Credit than your current benefits, you could receive a top-up payment so that you do not lose out. This is called a 'transitional element'.

How does the transitional element work?

The transitional element is a top-up payment so that you do not lose out because of the introduction of Universal Credit. It means that, in cash terms, you cannot receive less than your current benefits.

However, if your Universal Credit entitlement increases, due to the annual increase in benefit rates or a new element being included in your award, your transitional element will be reduced by the amount of the increase (although not in the case of an increase in or new inclusion of, the childcare element). Once it has reduced to nil it will no longer be included. And you need to be aware that certain changes of circumstances will lead to the loss of your transitional element.

Who can get a transitional element?

In most cases, a transitional element will only be included in your Universal Credit awad if you are an existing benefit claimant and there are no changes in your circumstances leading to your claim for Universal Credit.

Relevant changes in circumstance are those which would have previously meant a new claim for income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit or tax credits.

There are three kinds of claim for Universal Credit:

• New claims e.g. when someone not currently on benefits loses their job and makes a new claim for Universal Credit
• Natural migration, when you are on benefits but have a change of circumstance which triggers a new claim for Universal Credit, e.g. when a partner moves in/out
• Managed migration, when your circumstances haven't changed so DWP initiates your transfer onto Universal Credit

DWP’s claim that “no one will be worse off” when moved on to Universal Credit only applies for the third kind of claim - “managed migration”. 

It is these claims that can have a transitional element included. Though there is one exception for those who claim Universal Credit due to natural migration and received a Severe Disability Premium in their old benefits, you can find out more about this below.

Can I lose my transitional element?

Your transitional element will be removed if, for example:

• a partner leaves or joins your household
• you were earning above the administrative earnings threshold of £79.70 a week in your first assessment period, but your earnings have since dropped beneath this level for three assessment periods in a row (for couples this is a combined earnings threshold of £127.40 a week)
• your Universal Credit award ends

Once you lose the transitional element it will not be applied to any future awards. There is one exception if your Universal Credit award ends due to an increase in income and you make a new claim for Universal Credit within 3 months of your previous claim ending – in this case the new claim is considered a continuation of the old claim and the transitional element can be included again.

Severe Disability Premium and transitional elements

There is no equivalent to the Severe Disability Premium in Universal Credit.

Between 16 January 2019 and 27 January 2021 a block was put in place stopping working age people who receive a SDP from moving to Universal Credit if they had a relevant change in their circumstances. The block was put in place to prevent a considerable loss in benefit income for SDP recipients.

The block was lifted on 27 January 2021 and, instead, a top-up payment called an 'SDP transitional element' has been added to UC for SDP claimants who move to UC. This exta element is only available to those who were entitled to an award of Income support, income-based Jobseeker's Allowance or income-related Employment and Support allowance that included an SDP, not those who only had an SDP in their Housing Benefit.

SDP recipients who can move to Universal Credit from 27 Jan 2021

If you are receiving the SDP and have a change in circumstances that prompts a new claim to Universal Credit, you will now need to claim Universal Credit instead of your existing benefits.

When you make your claim a top-up SDP transitional element will be included in the calculation of your Universal Credit award. The amount in your first assessment period will be as follows:

Single	An LCWRA element is included in your UC award	£120 per month
	No LCWRA element is included in your UC award	£285 per mont
Couple	The higher SDP rate was payable in your legacy benefi	£405 per month
	You weren’t getting the higher SDP rate and an LCWRA element is included in your UC award for either of you	£120 per month
	You weren’t getting the higher SDP rate and no LCWRA element is included in your UC award for either of you	£285 per month

After the first assessment period, the SDP transitional element is treated as if it were a standard transitional element, as described at the top of this page.

Once managed migration takes place SDP recipients will not get the SDP transitional element included in their Universal Credit award in their first assessment period, they will instead get a standard transitional element from the start of their Universal Credit claim.

Previous SDP recipients already on Universal Credit before 16 Jan 2019

If you were receiving an SDP in a legacy benefit (unless you were only claiming Housing Benefit) and you were already moved over to Universal Credit before 16 January 2019, meaning your SDP stopped, you will have remained on Universal Credit and you should have received an additional amount to compensate you for the financial loss experienced as a result.

A lump-sum payment to cover the period since you moved to Universal Credit was issued to eligible claimants in the Summer of 2019 and additional monthly payments have been paid since.

The monthly payment started at either £120, £284 or £405, depending on your circumstances, as set out in the table above. Since 8 October 2020, this monthly payment has been converted into a standard transitional element, becoming part of the overall Universal Credit award, and treated in the same way as other transitional elements as described at the top of this page.