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What if as well as gaining an Element the claimant loses an Element in the same Assessment Period?
How much is the Transitional Element eroded by? 
Is it the net loss or the total amount of the new element? 
The answer is – it depends!

The replacement of the LCW Element with the LCWRA works differently to other changes.

Swapping from the LCW to LCWRA Element – the TE is eroded by the net increase. 
This is clarified in amending regulations from 25.7.22

Example:

Hanna is single and gets UC which includes the LCW Element and a Transitional Element. Following a review Work Capability Assessment, she is found to have LCWRA. Her LCW Element is replaced by the LCWRA Element. 

The DWP will treat this as a relevant increase to her health-related element and the Transitional Element will be eroded by the net increase of £221.39 (the difference between LCWRA £390.06 and LCW £146.31).

But this will only apply where the LCW to LCWRA is for the same claimant – not the other member of a couple!


Example:

Ollie and Sam have a joint UC claim. Their UC includes the LCW Element for Ollie and a Transitional Element of £325. Sam has undergone a Work Capability Assessment and has been found to have LCWRA. As a couple they can only have one health related element – Ollie’s LCW Element is replaced by Sam’s LCWRA Element.

The full amount of the new LCWRA Element erodes the TE to nil. 

So, to compare the amounts of LCW/LCWRA and the TE:

Before the change they had £225 TE and £146.31 LCW = £457.89

After the change they have £nil TSDPE + £390.06 LCWRA = £354,28.

So they have lost £1o3.61 overall!



For other changes, the Transitional Element is eroded by the whole amount of the new element / increase to the element – so the actual gain, not the net gain, once the loss has been considered. 

Example:

Paul is a single UC claimant. His UC includes a Carer Element and a Transitional Element of £156 He has just had a Work Capability Assessment and has been found to have LCWRA. So, his Carer Element is replaced by the LCWRA Element (he cannot get both).

The DWP will look at the actual increase – ie the full amount of the new LCWRA Element. So, his Transitional Element is completely eroded.

Paul has lost both his TSDPE of £156 (completely eroded by the LCWRA Element) and has also lost his Carer Element (replaced by the LCWRA Element). So his total losses are £324.81. He has only gained the LCWRA Element of £390.06 – so he has only gained £29.47.


Example:

Ellie claims UC as a single claimant. Her UC includes the Transitional Element of £67. Six months after moving onto UC, two changes occur within the same assessment period. She becomes responsible for her granddaughter – so a Child Element of £269.58 is added and she loses her LCWRA on re-assessment.

The DWP will look at the actual increase – ie the full amount of the new Child Element. They will not take account of the loss of the LCWRA Element. So, her Transitional Element is completely eroded.








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