Special Guardianship Allowance and UC

Client has been awarded SGA for her grandchild, who lives with her. She is on UC and works part-time. She has notified UC of the SGA award, and UC has responded by removing the child element, applying the under-occupancy charge and removing her work allowance.
Not clear whether they are also treating the SGA as income too, to add insult to injury.

Am assuming Cl’s argument for a challenge is that she is responsible for the child and the child normally lives with her (CPAG, chap 4, p61).
Is this the correct approach?

Thanks

Yes, none of this is correct.

If the claimant is responsible for a child under an SGO and they live with her, they are treated as any other child would be. They generate a child element and a work allowance and whatever bedroom need is appropriate for a child of that age and gender.

SGA is not income for UC purposes because it is not listed as unearned income in reg 66.

An example of how this situation ought to play out is at ADM F1072:

Example 3 year old Tom had been in LA care following the death of his mother. His grandmother, Susan, applied for and was granted a Special Guardians Order, and awarded Special Guardianship Allowance. The LA ceased to have responsibility for Tom from the date of the Special Guardians Order and Susan became the responsible person. Susan is entitled to the child element and the Special Guardianship Allowance is not taken into account (see ADM H5002)

Thank you Elliot for your speedy response, that’s really helpful.