SDP transitional payment confused!

Callumrayb

Hi! So I recently put myself onto universal credit as I will be moving house and renting my own property soon, and I was eligible for the "SDP Transitional payment" which originally not added to my claim, I chased them up through my online journal and he said he would contact the relevant department and get it added for me as I was still eligible for it. Now reading about I've heard the term "lump sum" and I've also heard £120 a month that gets decreased over time. I'm EXTREMELY confused. Can anyone clear this up? Thank you so much!

calcotti

The SDP transitional element is an extra amount included in the calculation of your maximum UC amount. The starting amount of this element is fixed and in many cases is indeed £120. However it is subject to reduction over time if other elements increase.
So if you applied for UC at a time when you had no housing costs and the £120 was added then but you later rent somewhere so that the housing element is added the SDP amount will be reduced by the amount of the housing element. As rent is likely to be more than £120/month that means that the SDP element will disappear.

Callumrayb

calcotti said:

The SDP transitional element is an extra amount included in the calculation of your maximum UC amount. The starting amount of this element is fixed and in many cases is indeed £120. However it is subject to reduction over time if other elements increase.
So if you applied for UC at a time when you had no housing costs and the £120 was added then but you later rent somewhere so that the housing element is added the SDP amount will be reduced by the amount of the housing element. As rent is likely to be more than £120/month that means that the SDP element will disappear.

That's the weirdest benefit element I've ever heard of! Well it seems I'll only be getting 2 months worth of my SDP "transitional" payment... Thank you for the clarification.

calcotti

Callumrayb said: That's the weirdest benefit element I've ever heard of! Well it seems I'll only be getting 2 months worth of my SDP "transitional" payment... Thank you for the clarification.

It's the way transitional elements have worked in the past also, for example when people transitioned from IB to ESA. The intention is to avoid a drop in income for a claimant as they switch but to to give them a permanent increase over other claimants. However the impact of 'erosion' will be much greater for UC because it incorporates what was originally numerous benefits whereas in the case of IB to ESA it just meant that claimants transferred from IB to ESA effectively had their entitlement frozen and missed out on annual increases.
I think the impact on someone in your position is particularly unfair.