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Forum Home  →  Discussion  →  Universal credit migration  →  Thread

Children, Migration and Transitional Protection

Adam Evenson
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Hi,

Client is currently claiming IS, HB, CTC, CA and is migrating over to UC. There are two issues regarding her children.

‘Child One’
She was until recently also receiving Fostering Allowance for fostering of a child. She hadn’t told any of her benefits about her fostering when she contacted us so I contacted them all to inform them of this. In the meantime, she has received a Migration Notice with the deadline of 9/1/25.

In between me making the change of circumstances and the Migration deadline, she has been approved to fully adopt the child - she has just applied for CB (I believe about 2 week ago) but no decision has been made. Would this child be included as part of TP or not because we haven’t registered a change of circumstances with her legacy benefits?

‘Child 2’
She has a 19 year old daughter who is claiming PIP and is a QYP - she turned 20 in April. Firstly, would we still be included in the TP calculation and secondly, does she need to inform UC when she turns 20 (or is this done automatically?)

Her daughter is in receipt of a large CICA payment (approx £82,000) - how are these treated and does she need to declare it? I believe that she was appointed to use the money ‘solely for the benefit of her daughter’ but this is not in a trust fund etc.

Thanks

[ Edited: 5 Jan 2025 at 08:36 pm by Adam Evenson ]
Elliot Kent
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I was wondering whether this was a real case or some deliberately fiddly case study.

As to the first child, there would be no ChB/CTC/UC payable in relation to the fostered child whilst the council are paying a fostering allowance. You state that there has been “final approval” to adopt the child. I think you need to understand precisely what it is that has happened. If the child has been legally adopted (i.e. a court has made an adoption order and your client is now the legal parent of the child and the fostering allowance has therefore ceased), it may be possible to attain some CTC entitlement effective from a date prior to claiming UC which would then register in the TP calculation.

As to the second child, this is a case where they are a QYP for the purposes of CTC but not UC. The TP calculation in these cases is a bit unclear - the DWP may say that they are required to calculate the TP as though a child element would be included (even though it would not be in reality) because of the assumption at reg 54(2)(a) UC (TP) Regs - which would mean no TP in respect of the child. Arguably this is incorrect and the TP calculation should be run as normal without including the child element in the indicative UC amount as per Charles here: https://www.rightsnet.org.uk/forums/viewthread/19233/

The DWP had been avoiding this whole issue by deferring migration notices in these cases until the child turns 20. I am not sure if that is still the policy, but one possibility is to ask for an extension on that basis. Your client’s tax credits would then stop on 5 April, when the tax credit system ends, but their other benefits would continue past that date until they claimed UC.

In relation to the CICA funds, on your description it sounds as though the funds are indeed held by mum on trust for the daughter (see in relation to your similar case here: https://www.rightsnet.org.uk/forums/viewthread/20361). They would not be counted as capital for mum (as she is not the beneficial owner) and are likely to be disregarded if the daughter were to make her own claim for UC (at least to the extent that they amount to compensation for personal injury, which I understand CICA payments generally are).

Adam Evenson
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Blackpool Centre For Unemployed

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Hi Elliot

Thanks for the reply - I wish it was a case study!

I will certainly ask those questions today about child one

I will definitely discuss whether she wants to extend the migration date to avoid any ‘awkwardness’ with the QYP issues. She may not want to as she did just assume that her daughter would be taken off anyway so I will leave it up-to her

Adam Evenson
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She has decided to ask for an extension to avoid those issues mentioned (it’ll be interesting to see if they do allow it and if that still is there policy) - one last question, if it is extended, I assume she will still get the TP if she migrates over by the new deadline date?

Daphne
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We have been told at stakeholder forum that tax credit migration notices will no longer be extended as there is a hard stop on 5/4/24 - see my notes and DWP key points from November Move to UC meeting - https://www.rightsnet.org.uk/resources/dwp-stakeholder-meeting-updates#Move_to_UC.

Daphne
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Regulations out today - https://www.rightsnet.org.uk/welfare-rights/news/item/miscellaneous-amendments-to-social-security-legislation-including-in-relation-to-managed-migration-and-the-ending-of-tax-credits-in-april-2025 - also confirm that no deadlines will be given beyond 5/4/25 for TC claimants and provides for shorter notice than three months.

Explanatory memo also highlights that ‘If a customer were to make a claim for UC after the closure of their TC, their transitional element entitlement (if any) would not reflect their award of TC.’

Adam Evenson
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Thanks Daphne, I did explain this to her in part but I will mention it again to her today.