SDP back payment and migration from ESA to UC. What to do?

Jazeebo

Hi there,

Received a letter stating I need to apply for UC as part of my migration from ESA to UC with back payment savings.

I am currently in receipt of the ESA/PIP. In Feb of this year, I was told to apply for SDP (Severe Disability Premium). I did in December of last year and in Feb this year just over £15K appeared in my bank account overnight. Fearing this was a mistake I contacted DWP who stated it was what I was owed for the past 5 years for SDP in backpay and that my ESA would also be increasing each fortnight. I had £5k in savings already before this, which was in an ISA, so I added the £15k to the ISA and made a small amount of interest. My ISA matured recently so I have been buying a few bits and pieces, that I needed. I started a new 1 year ISA with my 5k but still have just over £12k in a savings account, as well. I was initially told that this would be discounted for at least 1 year from the date of the payment which was Feb this year. I have recently received a migration letter to move from ESA to UC, and it would appear I have 3 months to do so. What I would like to know is. Is this going to affect my claim for UC, seeing as I have savings over the £16k threshold even though it was the DWP and the large back payment that pushed me over the limit in the first place? I would ideally like to get this sorted asap but I am thinking I won't get anything because of the savings. I am a bit confused over all this and would appreciate some info and advice if possible. Many thanks in advance. Cheers, J.

8dayweek

When you make your UC claim you can input your Savings details - and there is a section that lists a series of scenarios (i.e. potential disregards, such as lump sum arrears of benefits) which you can answer yes to and it will then “flag” a verification of capital. When you do your ID check, the Jobcentre can also verify your total capital, less any disregards. 

HillStreetBlues

With the SDP you shouldn't have had to apply it it should have been automatic, they made an error in not paying you from when you were first entitled.
As it was over £5k and their error the back payment is disregarded for the life of the claim.
This does include moving over to UC as long as the break isn't over a month.

Arrears and concessionary payments of £5,000 or more
H2092 Where
1. a person has received a payment of arrears of, or compensation for non-payment of arrears of benefit
or AFIP1 of £5,000 or more and
2. the payment
2.1 is received during the current UC award and the payment would be disregarded from the
calculation of capital of the claimant if the claimant were entitled to an existing benefit2
 (see ADM
M6003) or SPC or
2.2 was received during an award of an existing benefit or SPC (the earlier award) and the claimant
became entitled to the current UC award within one month of the date of termination of the earlier
award and the payment was disregarded from the calculation of the claimant’s capital for the
purposes of the earlier award and
3. the period of entitlement to benefit or AFIP to which the payment of arrears or compensation relates,
begins before the first day on which the abolition of existing benefits comes into force
the payment is disregarded for a period of 12 months from the date of receipt of the payment or until the
termination of the current award, whichever is the later3
.

DM Guide
https://assets.publishing.service.gov.uk/media/654111fb1f1a60000d360b54/admh2.pdf

nannytone_2

SDP has never been awarded automatically.  That's why so many that were entitled didnt realise it existed and received large backpayments when they became aware if it

marcia_

nannytone_2 said:

SDP has never been awarded automatically.  That's why so many that were entitled didnt realise it existed and received large backpayments when they became aware if it

 I was automatically given it and then it stopped when my partner moved in. 

HillStreetBlues

marcia_ said:

nannytone_2 said:

SDP has never been awarded automatically.  That's why so many that were entitled didnt realise it existed and received large backpayments when they became aware if it

 I was automatically given it and then it stopped when my partner moved in. 

Same as me. When I first started claiming ESA I hadn't a clue about the add ons.

nannytone_2

They are exceptions,
When I worked for a disability charity, we were regularly requesting IS10s for people to claim SDP
 DP ans EDP were automatic but SDP had to be claimed

HillStreetBlues

nannytone_2 said:

They are exceptions,
When I worked for a disability charity, we were regularly requesting IS10s for people to claim SDP
 DP ans EDP were automatic but SDP had to be claimed

https://www.gov.uk/disability-premiums

There are 3 types of disability premium for adults:

• disability premium
• enhanced disability premium
• severe disability premium

How to claim

You do not have to claim disability premium. If you’re eligible, it’s automatically added to your:

• Income Support
• Jobseeker’s Allowance (JSA)
• Employment and Support Allowance (ESA)
• housing benefit

The reason disability premiums are backdate to when first entitled is it's a error by the DWP as it should be automatic.

nannytone_2

Notice the bolded part says disability premium (the name of the lowest premium), rather than disability premiumS, which would include all 3

HillStreetBlues

Notice where it states "3 types of "disability premium" and it names the 3 types one is also called disability premium
The use of "disability premium" encompasses the three different types one happens to be the same name.
If it only applied to DP and not EDP & SDP it would then contradict your statement about  EDP being automatic.
 

nannytone_2

The EDP is automatic, because the only criteria for it is that the claimant receives high rate of disability benefit .  For SDP, The criteria is more involved