UC- TRANSITIONAL PAYMENTS NOW BEING PAID

Created 09/08/2019

The government has started to make transitional payments to those claimants who have lost the SDP(severe disability premium)as part of their Income Support, Income-based Jobseeker’s Allowance or Income-related Employment
and Support Allowance(but not Housing Benefit), as a result of migrating onto Universal Credit. Schedule 2 of the new regulations lay out the provisions to allow transitional payments to come into effect.

The monthly payment amounts are-

'The transitional SDP amount, calculated by reference to the date of the determination, is—
(a)in the case of a single claimant—
(i)£120, if the LCWRA element is included in the award, or
(ii)£285, if the LCWRA element is not included in the award;
(b)in the case of joint claimants—
(i)£405, if the higher SDP rate was payable and no person has since become a carer for either of them,
(ii)£120, if paragraph (i) does not apply and the LCWRA element is included in the award in respect of either of them, or
(iii)£285, if paragraph (i) does not apply and the LCWRA element is not included in the award in respect of either of them.'
Advisers need to be aware that clients may lose these payments where
circumstances change-

Payments won't be made where one of these conditions applies-
● the claimant ceases to meet the conditions of entitlement to Universal Credit or becomes, or ceases to be, a member of a couple)
● the claimant has not (or, in the case of joint claimants, neither of them has) ceased to be entitled to the care component, the daily living component, armed forces independence payment or attendance allowance
● 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

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