WTC pensioner, working, substantial capital - can still get UC for up to 12 APs?

Could someone nice take a look at this and point out any flaws? 

If this is right, people in this situation will look at online estimates and not bother to claim. As this one nearly did.

Single claimant, pension age, no dependants.

Works, but only for about £60 a week.

SRP of £221 a week.

Homeowner, with capital of £100,000

In receipt of PIP

Gets £96 a month Working Tax Credit as a disabled worker – income counted includes taxable interest from savings.

Along comes a Migration Notice to move to UC. The person thinks they can’t claim owing to income and capital.

However -  Reg 55 UC Transitional provision applies and creates a huge Transitional Element which then allows an actual UC payment of £96 a month.

This will only be payable for a maximum of 12 APs, as the transitional capital rule is in play.

Clamant has never had their disability assessed ESA/UC style, so they could go for the WCA (and can be treated as having LCWRA in the meantime owing to age and PIP)

If LCWRA element is payable, it will wipe out the TE from when it’s awarded, but claimant will be better off for the remainder of the available UC.

Erm…?

That looks right to me - though welcome others thoughts -  and one example of a winner…

Just one quick thought Andrew - is it enhanced rate daily living, otherwise only treated as LCW if standard rate

Also how come earnings so low if working 16 hours per week??

The working hours/pay troubled me, but I think it’s self-employment.  I’ll check with our adviser.

I was hypnotised by the figures…..

I think it is enhanced PIP, so LCWRA.

Phew.