Thousands of Universal Credit recipients are getting up to an extra £262 from the Department for Work and Pensions following a rule change.
New regulations have recently been introduced by the Department for Work and Pensions which will mean an extra income of up to £262 for around 600 recipients each month. This will gradually affect thousands of people between now until 2028, by which time all recipients of the old benefits will have switched to Universal Credit.
The intention behind these supplementary payments is to avoid a sudden drop in income for individuals who previously received additional financial support because of a disability. Importantly, this will ensure that their benefits do not fall when the switch from old benefits to Universal Credit takes place.
The Five New Universal Credit Payment Categories
On 14 February, the legislation came into force, defining five categories of people moving to Universal Credit. New SDP (Severe Disability Premium) transitional elements are as follows:
- Single claimants previously entitled to EDP (Enhanced Disability Premium): Additional amount of £89.63 (previously £84)
- Couples previously entitled to EDP: Additional amount of £128.04 (previously £120)
- Single claimants previously entitled to DP (Disability Premium): Additional amount of £183.52 (previously £172)
- Couples previously entitled to DP: Additional amount of £262.48 (previously £246)
- Disabled children or qualifying young individuals: Additional amount of £188.86 (previously £177)
Other Existing Transitional Payments
In addition to the new payments, other transitional measures are already in place. These include:
- Transitional SDP element if LCWRA (Limited Capability for Work and Work-Related Activity) sick pay is included in Universal Credit: £140.97 (previously £132.12).
- Transitional SDP element if LCWRA is not included: £334.81 (previously £313.79)
- Transitional SDP element for joint claimants receiving the higher rate of Severe Disability Premium: £475.79 (previously £445.91).
Eligibility Requirements
To qualify for these transitional payments, specific criteria have been defined by the government. Although most people will automatically receive the transitional amounts, some will have to apply for them.
In order to benefit from transitional protection, the following conditions must be met:
- The claimant or their partner must have been entitled to Income Support, income-based Jobseeker's Allowance or income-based Employment and Support Allowance.
- The claimant must have been entitled to Severe Disablement Allowance in the month immediately before the first day of their Universal Credit payment.
- The claimant must still be eligible for severe disability premium at the start of their Universal Credit claim.
- The claimant's claim must not have been attached to an existing Universal Credit claim.
Additional conditions must be met in the first month following the Universal Credit claim for couples who were receiving the higher rate of Severe Disability Premium:
- No one must be getting Carer's Allowance or Carer's Support Allowance for you or your partner.
- No one must receive an extra amount on top of their Universal Credit payments for caring for you or your partner.
As Universal Credit increases, transitional protection will decrease so that the total amount remains the same as at the time of transition. It excludes increases to cover childcare costs.
If a claimant is single and starts living with a partner, or stops living with an existing partner, the increase will stop. It will also end if the increase in Universal Credit exceeds the transitional amount, thereby cancelling it.
In addition, protection will end if the claim for Universal Credit ends or if the claimant's income falls below the threshold for more than three assessment periods.
However, if Universal Credit payments are stopped for less than three months because earnings have risen above the benefit threshold, the claimant may be eligible for transitional protection again when their claim resumes.
