Migrating to UC after a SDP back payment

MrHeisenberg

Hi all,

I will inevitably need to migrate to Universal Credit at some point in the near future.

Around 2 or 3 years ago, I received a £16K back payment from the DWP due to the fact that an error was made, by myself and/or the DWP, in terms of not claiming severe disability premium. Today, most of that remains unspent (I have been trying to keep the money for a rainy day, so to speak).

In a letter I received from the DWP around the time that I received the back payment, they confirmed that the payment will not be regarded as capital for as long as I am claiming income-related ESA (or the equivalent of Universal Credit?), which is a massive relief. My worry, however, is that that capital won't be disregarded when I have to migrate to Universal Credit.

Can anyone provide any clarification or confirmation?

Sincere thanks in advance.

HillStreetBlues

Sounds like an official error or error in law so that covers the length of the award..
This will include migration to UC as long as the is a gap of less than a month

https://www.legislation.gov.uk/uksi/2014/1230/regulation/10A

Arrears of benefit disregarded as capital

10A.—(1) This regulation applies in relation to the calculation of an award of universal credit (the “current award”) where the claimant has received a payment of arrears of benefit [F2or armed forces independence payment], or a payment made to compensate for arrears due to the non-payment of benefit [F2or armed forces independence payment], of £5,000 or more, and the following conditions are met—

(a)the payment—

(i)is received during the current award; or

(ii)was received during an award of an existing benefit or state pension credit (the “earlier award”) and the claimant became entitled to the current award within one month of the date of termination of the earlier award;

(b)in the case of a payment falling within sub-paragraph (a)(i), it would be disregarded from the calculation of the claimant’s capital if the claimant were entitled to an existing benefit or state pension credit;

(c)in the case of a payment falling within sub-paragraph (a)(ii), it was disregarded from the calculation of the claimant’s capital for the purposes of the earlier award; and

(d)the period of entitlement to benefit [F3or armed forces independence payment] to which the payment relates commences before the first date on which, by virtue of section 33 of the Act (abolition of benefits), no claimant is entitled to an existing benefit.

(2) Where this regulation applies, notwithstanding anything in the Universal Credit Regulations, the payment is to be disregarded from the calculation of the claimant’s capital for 12 months from the date of receipt of the payment, or until the termination of the current award (if later).]

As long as there isn't a break in your claim over a month when you transfer to UC then the disregard remains.

MrHeisenberg

HillStreetBlues said:

Sounds like an official error or error in law so that covers the length of the award..
This will include migration to UC as long as the is a gap of less than a month

https://www.legislation.gov.uk/uksi/2014/1230/regulation/10A

Arrears of benefit disregarded as capital

10A.—(1) This regulation applies in relation to the calculation of an award of universal credit (the “current award”) where the claimant has received a payment of arrears of benefit [F2or armed forces independence payment], or a payment made to compensate for arrears due to the non-payment of benefit [F2or armed forces independence payment], of £5,000 or more, and the following conditions are met—

(a)the payment—

(i)is received during the current award; or

(ii)was received during an award of an existing benefit or state pension credit (the “earlier award”) and the claimant became entitled to the current award within one month of the date of termination of the earlier award;

(b)in the case of a payment falling within sub-paragraph (a)(i), it would be disregarded from the calculation of the claimant’s capital if the claimant were entitled to an existing benefit or state pension credit;

(c)in the case of a payment falling within sub-paragraph (a)(ii), it was disregarded from the calculation of the claimant’s capital for the purposes of the earlier award; and

(d)the period of entitlement to benefit [F3or armed forces independence payment] to which the payment relates commences before the first date on which, by virtue of section 33 of the Act (abolition of benefits), no claimant is entitled to an existing benefit.

(2) Where this regulation applies, notwithstanding anything in the Universal Credit Regulations, the payment is to be disregarded from the calculation of the claimant’s capital for 12 months from the date of receipt of the payment, or until the termination of the current award (if later).]

As long as there isn't a break in your claim over a month when you transfer to UC then the disregard remains.

Sincere thanks!

Does that mean that I have to complete the UC migration process within a month? I understand that it can take around 5 weeks or more for the migration to take place, which is over a month?

HillStreetBlues

MrHeisenberg said:

As long as there isn't a break in your claim over a month when you transfer to UC then the disregard remains.

Sincere thanks!

Does that mean that I have to complete the UC migration process within a month? I understand that it can take around 5 weeks or more for the migration to take place, which is over a month?

Migration happens on the day you first claim UC.
With UC it takes about 5 weeks for the first payment.

What the month covers is if you had a letter stating your ESA will end on the 1st May and invite you to claim UC. If you don't claim UC till 2nd June  then the capital protection would end.

MrHeisenberg

HillStreetBlues said:

MrHeisenberg said:

As long as there isn't a break in your claim over a month when you transfer to UC then the disregard remains.

Sincere thanks!

Does that mean that I have to complete the UC migration process within a month? I understand that it can take around 5 weeks or more for the migration to take place, which is over a month?

Migration happens on the day you first claim UC.
With UC it takes about 5 weeks for the first payment.

I am incredibly grateful for all your help.