Benefits Update - December 2020

There are a few updates to benefits that we would like to bring to your attention.

Changes to the Severe Disability Premium

The Severe Disability Premium is an amount of money, £66.95 currently, added to the following benefits:

1. Income-Based Employment & Support Allowance
2. Income-Based Jobseekers Allowance
3. Income Support

It is only paid to the following people:

1. Single people not living with another adult as part of their household, that claim Personal Independence Payment or the Middle or Higher rate of Disability Living Allowance Care Component. Also they must not have anyone claiming Carers’ Allowance for looking after them.
2. Couples not living with another adult as part of their household, where both receive Personal Independence Payment or the Middle or Higher rate of Disability Living Allowance Care Component. The rules for couples and carers in this situation are complex so please seek advice.

Claimants receiving SDP are currently protected from having to claim Universal Credit if their circumstances change. However, this protection will end on 27th January 2021.

After this date, claimants may be moved on to Universal Credit but will have a Transitional Payment added to their Universal Credit instead of the Severe Disability Premium.

Claimants whose circumstances don’t change will, eventually, be “migrated” on to Universal Credit with their existing award protected. However, the award, will effectively, be frozen and will not be uprated annually until new claims reach the same level.

New claimants coming into the system in the future are likely to find that their awards are considerably lower than existing claimants.

If you think you might be affected by this change, please get in touch with Shine so that we can monitor the impact.

Universal Credit and “legacy” benefits

Members might be aware that since the Covid 19 situation began, Universal Credit claimants have received an additional £20 as part of their entitlement. However, those in receipt of, so called, “legacy benefits”, such as Employment and Support Allowance, have not received the same increase.

Shine has been working with our partners in the Disability Benefits Consortium to try and remedy this situation and to have legacy benefits increased. We are also working to try and ensure that the £20 increase is paid permanently beyond the Covid 19 crisis.

We would like to hear from members on this issue and put some case studies together. For example, if you are a Universal Credit claimant - how has the additional £20 helped you manage during the Covid-19 crisis? On the other hand, if you are an ESA claimant, how would an additional £20 help you cope with the crisis?

If you have any questions or comments, please get in touch with Bryn Roberts, Lead Disability Benefits Officer, at bryn.roberts@shinecharity.org.uk