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SDP transitional payment

tetrisqueen

Does anyone know much about the SDP transitional payment and reasons it’ll stop?

I’m finding conflicting advice and no one can seem to tell me for certain.
Does it follow the usual rules of SDP plus the transitional eroding rules or are there other considerations?
I know there is one stupid rule about how if earnings drop below AET three months in a row we lose it - which is absurd.

If someone claims Carers for me will it end? Some guidance says no, because it doesn’t follow SDP rules and some says yes. Also some say if I lose PIP I can keep SDP transitional and some says I can’t.

Anyone know?

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tetrisqueen

@woodbine For those already receiving the old SDP compensation or have joined UC after January this year it already exists. I’m in the former group and so my SDP compensation payments have moved over to now be transitional payments.
I’m trying to find out the rules on these.
From what I’ve read they continue even if I lose PIP or someone starts claiming carer’s for me as they don’t follow normal SDP rules but I wondered if someone knows for certain as I’ve read conflicting things.
I’m doing my PIP renewal at the moment and have always had to go to tribunal as epilepsy and adhd are a fight to get people to understand.

calcotti

Here are the SDP element amounts (scroll down)
https://www.entitledto.co.uk/help/Transitional-protection-Universal-Credit

These are starting amounts. Any increase to other elements of the award will reduce the SDP element. However the old SDP qualifying conditions are no longer looked at.

tetrisqueen said: If someone claims Carers for me will it end? Some guidance says no, because it doesn’t follow SDP rules and some says yes.

If somebody who is not your partner claims CA for looking after you that does not affect the SDP element. If however your partner were to declare themselves a carer then the carer element would be added to your joint UC claim and the SDP element would be reduced by this amount.

tetrisqueen said: I know there is one stupid rule about how if earnings drop below AET three months in a row we lose it - which is absurd.

I am not aware of any such rule - where have you got that from. It would indeed be absurd.

tetrisqueen said: From what I’ve read they continue even if I lose PIP

I believe that is correct.

However there are changes that will end the SDP element such as going from being single to being part of a couple (even if the new partner gets SDP or SDP element in an existing benefit claim).

See also
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955776/adm1-21.pdf, and
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955786/admm7.pdf

Adrian_Scope

calcotti said:

tetrisqueen said: I know there is one stupid rule about how if earnings drop below AET three months in a row we lose it - which is absurd.

I am not aware of any such rule - where have you got that from. It would indeed be absurd.

Sadly I believe @tetrisqueen is correct, if your earnings drop for three months in a row you can lose transitional protection.

"When transitional protection ends
M7533
Transitional protection ends where
1. in the first assessment period of the award
1.1 the claimant’s earned income was the same as or more than the single administrative threshold or
1.2 the joint claimants’ combined earned income was the same as or more than the couple administrative threshold and
2. it is the assessment period after the third consecutive assessment period in which
2.1 the claimant’s earned income is less than the single administrative threshold or
2.2 the joint claimants’ combined earned income is less than the couple administrative threshold"

@tetrisqueen, I hope @calcotti's response has been helpful but if you do have any more questions please don't hesitate to ask.

calcotti

Thanks, Adrian. I can see the entitledto link I posted earlier does refer to this. I hadn’t picked it up (it’s obviously fairly new).

Obviously someone with little or no earnings when the UC claim starts will not be affected by the rule but for anybody else with earnings over AET if they experience a reduction in earnings they then get hit by a reduction in maximum benefit entitlement too. This can only make it even more difficult for them to manage the change.

I can’t follow the logic (if any) behind that at all.

Adrian_Scope

I agree, I don't follow the logic behind it either @calcotti. If anything it seems to be an incentive to ensure you have no earnings in your first assessment period else it can really impact you in the future.

calcotti

Adrian_Scope said:

I agree, I don't follow the logic behind it either @calcotti. If anything it seems to be an incentive to ensure you have no earnings in your first assessment period else it can really impact you in the future.

Agreed, or at least below the AET.

Found this old briefing paper from 2012
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181344/ucpbn-transitional-protection.pdf
Paragraph 6 says

it is appropriate to end this protection when circumstances underlying an award are no longer recognisable as those on which the legacy calculation was made. Therefore Transitional Protection will end altogether if a claimant’s circumstances change significantly.

So that seems to be what is behind it. It sounds very logical but my gut is telling me that it isn’t and will have unintended consequences.

So someone in ESA Support Group with SDP and doing permitted work at £120/week. Claims UC and gets SDP transitional element. Employment ends, or hours reduce, so drop below the AET - they lose the SDP element. If on the other hand they were previously only earning £75/week that is below AET so they are unaffected by the rule. Even if their earnings then rise they still retain the SDP element because the rule only refers back to the start of the claim.

I’ve learnt something new today.

TeddyB22

Interesting thread. Some good advice. I am now receiving the Transitional Top up of £120 per month. I just asked them on my UC Journal & they paid me. It's still not the £230 it was on Legacy Benefits but it helps.
In didn't know that you could still receive it even if you lose PIP.

calcotti

TeddyB22 said:

I am now receiving the Transitional Top up of £120 per month. ..It's still not the £230 it was on Legacy Benefits but it helps.

It's worth teasing that out a bit more. The SDP is £66.95/week which is equivalent to £290.12/month. That makes transitional element £120/month look very mean. However the combined value of the Support Group component and Enhanced Disability Premium on ESA are only worth £243.97/month whereas the UC LCWRA element is £341.92, a gain of £97.95/month. Take the SDP transitional element and the LCWRA gain into account and you have £217.95/month (still a loss compared to ESA with SDP but not quite as bad as first appears).

However the SDP element will reduce overtime (as discussed earlier in the thread) whereas the SDP itself increases every year. Your maximum UC amount is effectively now frozen until such time as the SDP element has been eroded to nil.