Transitional Protection, (TP) – Its a Mugs Game and we get mugged every time.
The government has used Transitional Protected at least three times since 2011. It is a method of cutting benefit over time and not immediately. Maybe if Mr Osborne had given his Tax Credit cuts transitional protection, he might have got away with it.
For once I have to agree with Ian Duncan Smith’s statement on The Andrew Marr’s Show that “Nobody will lose any money on arrival on Universal Credit from tax credits because they’re cash protected, which means there’s transitional protection,”
Yes claimants will get the same amount of Universal Credit when they transfer from Tax Credits to Universal Credit,
But as usual Duncan Smith is only telling us part of the truth!
He also said “There were always points under tax credits that were more generous than universal credit.” Meaning new claimants will get less under Universal Credit than Tax Credits.
Finally he stated “Nobody loses a penny, unlike they would have done under tax credits.“ and that is blatantly not true
Transitional protection. (TP) is sleight of hand that relies on people’s differing reactions to imminent and future cuts to benefits and we fall for it every time!
Transitional Protection will ensure that as IDS says Nobody will lose any money on arrival on Universal Credit from tax credits”, as claimants will receive the same amount of Universal Credit as they did Tax Credits.
Claimants who receive TP will not get any annual increase when benefit rates increase each April. Whilst on paper their benefit never visibly goes down, equally it will not increase until new claimants, who will receive less, catch up with them. Psychologically this method makes us feel like we never lost anything, where as in fact the eventual loss to those on Universal Credit will be the same as the proposed cuts to Tax Credits.
As the article below states if you have a change in your circumstances then you lose your TP and will see an immediate drop in income especially if you have more than two children.
The only benefit that has been cut before claimants even start to receive it!