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When SDP transitional element stops
Hi All
Getting myself tied up in knots here I think.
Client gets SDP transitional element in her UC.
UC includes housing, child and carer elements.
She would like to take on some part time work. This would reduce her UC but not stop it.
If the job doesn’t work out and UC needs to increase again, would this be taken from the transitional element (after three months of reduction in income)?
CPAG suggests this only applies if claimant was earning at least the level of no work-search requirements at the time of the UC claim. DR Handbook doesn’t mention this only applying to the start of the UC claim. The TP Regs seem to support CPAG on this.
Or maybe there’s something else I’m not considering.
Any thoughts gratefully received. Don’t want client to be worse off than she is now if the job doesn’t work out.
In general changes in income has no impact on the SDP transitional element. It is increases in the other elements that erode the SDP transitional element - such as an increase in the housing element or addition of a child element.
The loss of SDP transitional element due to sustained drop in earnings only applies to claimants who had earnings over the threshold taken into account in the first AP of the UC claim, as referred to in Regulation 56(2)(a)(ii) or 56(2)(b)(ii) as applicable.
(I have wondered whether there might be cases where a client should consider taking unpaid leave immediately prior to claiming if they are at risk of falling into this trap but fear that would be deprivation of income)
[ Edited: 6 May 2021 at 02:07 pm by Ianb ]Thanks, Ianb, that’s reassuring.