Universal Credit is a payment which is replacing six legacy benefits, and these are: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit.
Universal Credit is a payment which is replacing six legacy benefits, and these are: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit.
An important change relating to some benefits claimants came into effect on Wednesday.The Severe Disability Premium (SDP) gateway came to end. SDPs are a part of the sickness and disability benefit Employment and Support Allowance, which UC is slowly replacing.
The SDP is an extra amount which is paid with certain legacy benefits to claimants who meet a certain criteria.Around 500,000 people claimed SDPs and 1.4million claimed Enhanced Disability Premiums as of 2018.
But the payments do not exist in the same form in Universal Credit.
In January 2019, ministers blocked SDP claimants from moving to Universal Credit after two men who were switched over and lost out launched a High Court challenge. This block was called the ‘SDP gateway’.
Ministers have now lifted the two-year ban on people who claim ‘Severe Disability Premiums’ (SDP) moving to Universal Credit.
That means people on the old-style benefits can now choose to move to the new UC if they want to. However, some will also be moved without choosing to if they have a “change of circumstances”, like moving house or a relationship.
Charities say disability premiums help cover the extra costs disabled people face and some people may end up worse off in the change - despite ministers insisting the majority will benefit.
SDP claimants who move to UC get monthly transition payments of £120, £285 or £405 - but these will be eroded over time.
They will be chipped away if a claimant is awarded a new or larger element of any part of their UC, apart from childcare.
That suggests many will find it impossible to be certain how much money they will receive in the future.
The change has been criticism as “poorly-timed”, particularly as the country is mid-lockdown and this could cause “anxiety and uncertainty” for some of Britain’s most vulnerable people.
Department for Work and Pensions officials claimed no one will be “forced” onto Universal Credit but said it was “only right” that people are required to switch if there is a relevant change of circumstances.