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How is SDP compensation paid in UC?

Peter Turville
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Welfare rights worker - Oxford Community Work Agency

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Total Posts: 1414

Joined: 18 June 2010

I note thread https://www.rightsnet.org.uk/forums/viewthread/14936

How is SDP compensation being paid in practice? We have recently had our 1st client receive a lump sum arrears payment.

Client has had a long running issue with the LCFWE not being included in her UC payments (following a successful ESA appeal) and was being paid separately each AP (usually only after client intervention). This now appears to have been resolved and has been included ‘automatically’ in her UC payment for current AP. But the SDP compensation for the current AP was paid separately (and a few days in advance of the normal UC payt date).

Is separate payment of SDP for each AP a common experience? Wondering if the UC IT doesn’t like DWP trying to build 2 ‘corrections’ into the clients payments at the same time?

Rosie W
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Welfare rights service - Northumbria Healthcare NHS Trust

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Joined: 9 February 2012

Yes that’s our experience. The compensation is paid on a different date and there is a note on the journal the following day which says “A monthly payment of £120 was made on x x 2019”. The compensation is paid a few days (6 in this case) before the normal UC payment.

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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Joined: 24 November 2017

I recall reading that SDP compensation will always be paid as a separate payment and not included within the UC entitlement/calculation. If I can remember where I read it I will post the link.
UPDATE- here https://www.rightsnet.org.uk/welfare-rights/news/item/dwp-issues-further-guidance-on-the-payment-of-sdp-transitional-payments

This differs from the transitional protection when claimants are migrated to a UC which will appear as a transitional element within the UC entitlement as described in the regulations. http://www.legislation.gov.uk/uksi/2019/1152/regulation/3/made

By contrast the SDP bit is described as an SDP amount.

[ Edited: 2 Oct 2019 at 07:51 pm by Ianb ]