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New UC claim - how is SDP compensated?
I spoke to a client today who has just applied for UC (although couldn’t verify ID online). He is/was getting SDP.
The new UC claim is because HB was stopped in August, although I think we’ve got a good chance of getting that overturned (it’s all about absence with intention to return).
He spoke to somebody at the DWP who told him he would receive exactly the same amount of money as he is getting now, and that he would get three separate payments: 1. PIP 2. UC, and 3. ESA.
His ESA is definitely income-related. So why are the DWP saying he will still receive an ESA payment? Is this how they are compensating people for the loss of SDP (in the absence of new regs)?
And if this is not how they are making the SDP compensation payment, how are they doing it?
This might sound cynical or even high-handed but I really wouldn’t take too much notice of anything DWP says about UC cases that have any slightly tricky features.
No-one is getting compensated for SDP loss yet, and when they eventually are compensated it will not (according to the draft regs) leave with the same amount of money as before.
DWP’s comments here are a confused amalgam of ESA(c), the as yet unlaunched compensation scheme and future managed migration. Put simply, it’s rubbish.
See also this thread on the same topic -
https://www.rightsnet.org.uk/forums/viewthread/13584/
Shows there is a lot of confusion about….
His ESA is definitely income-related. So why are the DWP saying he will still receive an ESA payment?
Is it possible his existing award is contribution based with an income based top up, if so the contribution based part would continue.
This might sound cynical or even high-handed but I really wouldn’t take too much notice of anything DWP says about UC cases that have any slightly tricky features.
No-one is getting compensated for SDP loss yet, and when they eventually are compensated it will not (according to the draft regs) leave with the same amount of money as before.
DWP’s comments here are a confused amalgam of ESA(c), the as yet unlaunched compensation scheme and future managed migration. Put simply, it’s rubbish.
Thank you, Peter. That is pretty much what I thought, although I was worrying that perhaps I was being too cynical. But I’m not sure you can be too cynical about the DWP and UC any more.
I see what you mean about the draft regs - only £80 SDP if they are getting LCWRA - so still about £100 short.
Related query, hope I am not hijacking thread -
Client just applied for SDP with ESA (like a week or so ago). He needs to claim UC for housing costs but is holding off until SDP is awarded to hopefully protect his status once he goes from ESA to UC.
Getting tricky though due to falling behind with rent.
Is it even worth him doing this? Does he need to have the SDP locked in?
Of course still on in draft format but reg 63 of the draft Universal Credit (Transitional Provisions) (Managed Migration) Amendment Regulations 2018 says -
entitled to an award of an existing benefit that includes a severe disability premium
I read that as it must be in place - not enough to meet qualifying conditions for it.
Of course once you’ve applied for it by giving necessary info it should be included from that date even if ESA claim comes to an end before it’s been sorted (tho disconcerting maybe to do the UC claim without seeing it in place)
Thank you Daphne!
He meets all the eligibility criteria for SDP so it should just be a case of them adding it on but for some reason I don’t feel confident he is ok until it is actually added to his ESA!
He may have no choice either way soon though as rent needs to be paid somehow
Sounds like waiting is not an option, but if it is, and he gets SDP, and can hang on until January before claiming other benefits, Budget Costings Documents say (at page 9) that plans now are that he will be prevented from moving to UC for the time being -
People who receive the Severe Disability Premium (SDP) and who would have naturally migrated to Universal Credit (UC) will now only move to UC when they can receive transitional protection. This measure will be effective from January 2019.’
edit - of course if he does wait, there’s no guarantee he could get HB backdating agreed so that has to be factored in.
... also, we’re keeping our benefitmythbust on migration issues updated to reflect the current state of play.
[ Edited: 1 Nov 2018 at 04:55 pm by Stuart ]His ESA is definitely income-related. So why are the DWP saying he will still receive an ESA payment?
Is it possible his existing award is contribution based with an income based top up, if so the contribution based part would continue.
It seems it IS possible, yes! The client was absolutely adamant that he is getting IR-ESA and his confidence tricked me. I checked his old HB claim when he came to see me yesterday and it’s exactly what you suggest, Ianb. Although of course that means he’ll still be £180 short per month - and will categorically NOT be receiving the same amount he was getting before.
Sounds like waiting is not an option, but if it is, and he gets SDP, and can hang on until January before claiming other benefits, Budget Costings Documents say (at page 9) that plans now are that he will be prevented from moving to UC for the time being -
People who receive the Severe Disability Premium (SDP) and who would have naturally migrated to Universal Credit (UC) will now only move to UC when they can receive transitional protection. This measure will be effective from January 2019.’
edit - of course if he does wait, there’s no guarantee he could get HB backdating agreed so that has to be factored in.
... also, we’re keeping our benefitmythbust on migration issues updated to reflect the current state of play.
Very useful to know Stuart. Thank you
Client in UCFS area discharged from hospital 26.10.18. IRESA reinstated (but not assessed for SDP yet) as only getting £73.10 CBESA after 3 years in hospital. Advised by LA to claim HB as they thought his supported accommodation was exempt but it’s not so he should have claimed UC from date of discharge in order to get housing costs paid.
LA say they will assist with backdating UC claim but I am thinking that if he defers UC claim he could get SDP on his IRESA award and pay £50 rent with SDP thus protecting SDP when he does claim UC.
At present the transitional protection rules aren’t in place so he won’t be compensated for the loss of SDP unless/until the proposed regulations are passed.
He will be worse off initially but if he defers claim and establishes right to SDP he should get transitional protection. Am I right to offer this as an alternative to backdating his UC claim from date of discharge (and thus being disentitled to SDP)?
That strategy assumes the rent is definitely not eligible for HB. You describe it as supported accommodation, so there is a high chance this will be specified (exempt is just one of four categories of specified accommodation - any of the four will do). Can you clarify for the avoidance of doubt:
- who is the landlord
- who provides support, what kind and how much
- what is the nature of the accommodation (self contained or not, number of rooms etc)
- how does a person come to live there: is admission restricted to those with support needs?
Hi there,
Both myself and HB have been through the process of ascertaining that the accommodation isn’t exempt. The landlord is the LA and it’s not a hostel or a refuge, it’s simply a council tenancy and the social work department have commissioned support from a charity.
To answer the questions though
who is the landlord - Local authority
- who provides support, what kind and how much - Penumbra call in morning and night and during day to check on client and assist with daily living where needed
- what is the nature of the accommodation (self contained or not, number of rooms etc) - Flat in a block of LA flats where Penumbra have one of the flats
- how does a person come to live there: is admission restricted to those with support needs? Placed by social work but am unsure whether ALL tenants in the block have support needs
Thanks
OK, that makes sense. Local Authority in Scotland can only provide specified accommodation by way of a hostel or refuge - just though it was worth making sure you’d covered all the bases.