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SDP compensation through UC
I wonder how they are going to check the person’s circumstances at the end of each assessment period. Or are they just relying on the claimant’s duty to disclose? And will recover if a relevant change of circs hasn’t been disclosed - or they think/say it hasn’t.
I recall somebody querying how these payments will be taken into account for CTR schemes though can’t find the thread to see if a consensus was reached. Has anyone had any experience of this yet?
So this is an extra £30 a week rather than the £65.85 for SDP?
I recall somebody querying how these payments will be taken into account for CTR schemes though can’t find the thread to see if a consensus was reached. Has anyone had any experience of this yet?
Interesting point. A conventional CTR scheme takes UC into account as income and uses the maximum UC as the applicable amount. UC changes normally balance out: the same amount is added to both the income and applicable amount sides of the calculation. the only change that affects CTR is a change to earnings. But the SDP compo takes the form of an additional amount of UC without any change to the maximum UC amount, which does seem to have the unfortunate effect of increasing the CTR income but not the applicable amount.
2020/21 schemes may need to be tweaked to cater for this. In the meantime, there is nothing to stop local authorities from making a discretionary s13A(1)(c) reduction equal to the amount of conventional CTR that is lost as a result of the compo being added to the income.
I have a similar case last week. Client advised to query loss of SDP on her UC Journal some months ago - client now received payment of arrears of £1,200 with payments of £120.00p/mth going forward. No explanation provided.
I had not seen any update from DWP on the amount of SDP to be paid with UC or compensation so advised client to dispute that amount using her UC Journal then MR in writing.
However DWP now issued the new Regs
http://www.legislation.gov.uk/ukdsi/2019/9780111178317
Para 2, 3 and 4 are very clear!?. “UC Making Benefits simpler and easy to understand”
“SCHEDULE 2
Claimants previously entitled to a severe disability premium: transitional payments
Transitional payments for existing UC claimants
1. Where it comes to the attention of the Secretary of State that—
(a)a claimant, or joint claimants, became entitled to an award of universal credit as a consequence of a claim made before 16th January 2019 and the Secretary of State is satisfied that regulation 4A (restriction on claims for universal credit by persons entitled to a severe disability premium) would have prevented the claim from being made if it had been in force at that time;
(b)that award has not since terminated (whether by a claimant ceasing to meet the conditions of entitlement to universal credit or becoming, or ceasing to be, a member of a couple);
(c)the claimant has not, or neither of joint claimants has, ceased to be entitled to the care component, the daily living component, armed forces independence payment or attendance allowance (all of which have the same meaning as in paragraph 6 of Schedule 4 to the Employment and Support Allowance Regulations 2008); and
(d)no person has become a carer for—
(i)in the case of a single claimant, the claimant, or
(ii)in the case of joint claimants—
(aa)if a severe disability premium was payable at the higher rate, both of them, or
(bb)if a severe disability premium was payable at the lower rate, the claimant who was the qualifying partner,
the Secretary of State must determine an additional amount of universal credit (“the transitional SDP amount”) which is to be payable in respect of each assessment period that precedes that determination and then for each subsequent assessment period that begins before the conversion day.
2. The transitional SDP amount, calculated by reference to the date of the determination, is—
(a)in the case of a single claimant —
(i)£80, if the LCWRA element is included in the award; or
(ii)£280, if the LCWRA element is not included in the award;
(b)in the case of joint claimants—
(i)£360 if the higher SDP rate was payable and no person has since become a carer for either or both of them,
(ii)£80, if paragraph (i) does not apply and the LCWRA element is included in the award in respect of either or both of them, or
(iii)£280, if paragraph (i) does not apply, the LCWRA element is not included in the award in respect of either or both of them and—
(aa)the lower SDP rate was payable, or
(bb)the higher SDP rate was payable but a person has since become a carer for one of them.
3. The Secretary of State must decide the manner in which the transitional SDP amount is to be paid, which may include payment of a lump sum covering all assessment periods preceding the determination under paragraph 1 and monthly payments thereafter.
4. If the LCWRA element is not included in the award at the time of the determination under paragraph 1, but is included in a later assessment period (and paragraph 2(b)(i) does not apply), the amount for that assessment period, and each subsequent assessment period beginning before the conversion day, is to be £80 (and the Secretary of State must make a further determination).”
- - - - - -
Not surprised really
That’s the original draft regs - the actual ones that came out in July are at https://www.gov.uk/government/publications/experiences-and-behaviours-of-dissatisfied-tax-credits-customers
slightly more generous than the original - your client is getting the £120 as guess he is eligible for LCWRA - but doesn’t fully compensate
Cheers Daphne - don’t know how I missed that.
Ah well back to the fog for me
I’ve also seen my first one - it says an extra £285 per month because you are severely disabled and states that the lump sum relates the period from the start of the UC claim, but apart from that it says very little. Doesn’t explain why this additional entitlement arises, not whether it affects the rest of the UC award or any other benefits. Doesn’t explain whether it is affected by changes of circumstance. My client thought that they had won their LCW appeal that was ongoing because of the wording. I wonder whether there is a standard response for if someone queries on their UC journal what the payment is?
That’s the original draft regs - the actual ones that came out in July are at https://www.gov.uk/government/publications/experiences-and-behaviours-of-dissatisfied-tax-credits-customers
Just helping out, I think this should be… http://www.legislation.gov.uk/uksi/2019/1152/contents/made
I wonder how they are going to check the person’s circumstances at the end of each assessment period. Or are they just relying on the claimant’s duty to disclose? And will recover if a relevant change of circs hasn’t been disclosed - or they think/say it hasn’t.
It’s worth noting that (surprisingly, IMO) if a claimant getting the SDP transitional payment acquires a non dependant, that won’t prevent them from getting the UC transitional amount, provided that the non dependant isn’t a carer being paid CA/UC carer element for looking after the claimant who has the SDP transitional payment.
see para 16.5 of the guidance at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/825754/adm15-19.pdf
That’s the original draft regs - the actual ones that came out in July are at https://www.gov.uk/government/publications/experiences-and-behaviours-of-dissatisfied-tax-credits-customers
Just helping out, I think this should be… http://www.legislation.gov.uk/uksi/2019/1152/contents/made
Haha! Thank you Timothy! Obviously didn’t check my post and it pasted the previous thing I’d copied!
And that is very interesting Emma!
I wonder how they are going to check the person’s circumstances at the end of each assessment period. Or are they just relying on the claimant’s duty to disclose? And will recover if a relevant change of circs hasn’t been disclosed - or they think/say it hasn’t.
It’s worth noting that (surprisingly, IMO) if a claimant getting the SDP transitional payment acquires a non dependant, that won’t prevent them from getting the UC transitional amount, provided that the non dependant isn’t a carer being paid CA/UC carer element for looking after the claimant who has the SDP transitional payment.
see para 16.5 of the guidance at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/825754/adm15-19.pdf
There are actually two separate points here:
1. At the point of the original determination to award a transitional SDP payment. At that point, like you say, they only check to see if anyone is in receipt of CA/UC carer element.
2. Assessment periods subsequent to the original determination (which I believe is what Rosie was talking about). Here, no checks at all will be made, because you simply cannot lose the transitional payment as long as entitlement to UC subsists! The only change that can ever be made is to reduce the level of the transitional SDP payments if the LCWRA element becomes payable at a later time.
There are actually two separate points here:
1. At the point of the original determination to award a transitional SDP payment. At that point, like you say, they only check to see if anyone is in receipt of CA/UC carer element.
2. Assessment periods subsequent to the original determination (which I believe is what Rosie was talking about). Here, no checks at all will be made, because you simply cannot lose the transitional payment as long as entitlement to UC subsists! The only change that can ever be made is to reduce the level of the transitional SDP payments if the LCWRA element becomes payable at a later time.
Yes, subsequent assessment periods is what I was thinking about. That’s good news re no loss of the transitional payment - thank you!
Can I just clarify the amounts of transitional element payable on moving to UC, we have read the regs and have rung the UC SDP line but have got different answers. When someone moves onto UC from a legacy benefit where the SDP was in payment, should they get the £285 initially, then depending on the outcome of a WCA this would be reviewed - ie if the LCWRA element then awarded, the transitional pmt would reduce to £120? We have a client who moved from IS with an SDP to UC last year, and following a WCA was awarded the LCWRA element. The SDP transitional payment has recently been awarded at £120pm all the way back to the start of the claim. Speaking to the SDP helpline, the first person advised that this was correct, but we later rang back and were advised that the amount could change depending on the clients circs in each particular month so the client may be entitled to a higher amount for the first 3 mths. We need to get the client back in the office before we ring them again as they couldn’t give specific info, but just wondered if someone could clarify the correct procedure??
Both are somewhat correct.
In the first instance, the rate depends on the circs at the point the DWP determine eligibility to the payments. This can then subsequently be reduced if the LCWRA element is included in the award at a later stage. But not the reverse.