SDP section removed and child element guidance clarified

The Department for Work and Pensions has removed the Severe Disability Premium section from its guidance on the Universal Credit transitional element and clarified how the child element and Child Tax Credit are treated.

The Department for Work and Pensions (DWP) removed the section on the Severe Disability Premium (SDP) from its guidance on how the transitional element is calculated when moving to Universal Credit, in an update published on 1 October 20241. The same update clarified guidance on the Universal Credit child element, Child Tax Credit and the transitional element for claimants responsible for a child1. The guidance was first published on 25 September 20241.

The DWP said the SDP section was removed because it looks at the total amount of a claimant's legacy benefit award when working out Universal Credit and the transitional element1. The transitional element is an additional payment that forms part of transitional protection, available to people who receive a Migration Notice letter and move to Universal Credit by their deadline date1. It is calculated as the difference between the indicative Universal Credit award, based on the claimant's known circumstances from the day before their claim, and their previous legacy benefit amount1.

On the child element, the guidance states that a claimant responsible for a child could get an extra amount until the 31 August after the child's 16th birthday, or after their 19th birthday if they are in full-time, non-advanced education or training, such as GCSEs, A levels, BTECs, Scottish Highers and SVQs, or NVQs up to level 31. Where a claimant received Child Tax Credit but their child is not eligible for the child element of Universal Credit, the transitional element will not cover that difference in entitlement1.

The guidance also sets out how the benefit cap applies, stating that the cap is used in the calculation of the transitional element and applied to the indicative Universal Credit award, and that some people, such as those of State Pension age, will not have their Universal Credit entitlement capped1. On housing, it says that where a claimant was not previously getting Housing Benefit, the transitional element and indicative Universal Credit award are calculated without a housing element, but housing costs may be included from the first assessment period if a housing need is identified in the Universal Credit claim, and that this is not a change of circumstances so will not cause the transitional element to decrease1.

"Removed section on SDP (Severe Disability Premium) as we look at the total amount of claimants' legacy benefit award when working out their Universal Credit and transitional element."

The guidance covers England, Scotland and Wales, with separate guidance for Northern Ireland1. It has been updated several times since publication: on 3 October 2024 a translation was added; on 8 October 2024 the calculation for claimants moving from Employment and Support Allowance (ESA) was clarified; on 21 October 2024 details of the Migration Notice Helpline video relay service for British Sign Language users were added; on 6 April 2025 the page was updated to reflect tax credits ending on 5 April; and on 27 August 2025 the section on moving from the old types of ESA was updated with corrected details on actions needed to start getting New Style ESA1.

Why it matters for households

The transitional element is part of transitional protection for households moved to Universal Credit by a Migration Notice. The removal of the SDP section does not change how the element is worked out: the DWP says it looks at the total legacy benefit award rather than the SDP separately1. For families, the child element runs to the 31 August after a child's 16th birthday, or 19th birthday in full-time, non-advanced education or training, and the transitional element will not make up a shortfall where a child on Child Tax Credit is not eligible for the Universal Credit child element1. Claimants moving from income-related ESA have that award included in the calculation, and anyone also getting contribution-based ESA moves to New Style ESA, which is deducted from the Universal Credit amount1. Claimants must agree to a Claimant Commitment before they can get New Style ESA1. Where a couple live apart and claimed tax credits as a couple, they are treated as two separate households on Universal Credit and are not eligible for the transitional element1.

What happens next

The guidance was last updated on 27 August 20251. No further changes have been reported. The Universal Credit Migration Notice Helpline is open Monday to Friday, 8am to 6pm, on 0800 169 0328, which the DWP says is free to call from mobiles and landlines1.

Sources1 cited
  1. How the transitional element is calculated when you move to Universal Credit - GOV.UK gov.uk