Severe Disablement Allowance is a lifeline for many people who have been unable to work for at least 28 weeks due to illness or disability. The payment was discontinued in 2001 and has been replaced by other benefits. Express.co.uk has compiled a guide to explain how a Severe Disablement Allowance works.
What is the Severe Disablement Allowance?
Severe Disablement Allowance is a non-means-tested benefit available to those aged 16 to 65 who have been unable to work due to illness or disability for more than 28 weeks.
The benefit payment is also paid by those who have not made the required National Insurance contributions to qualify for Incapacity Benefit.
Incapacity Benefit is money paid to people who cannot work because why are sick or disabled.
Both Severe Disablement Allowance and Incapacity Benefit are being replaced by Employment and Support Allowance (ESA).
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How much is SDA?
The basic weekly rate of SDA is £80.85 for 2020/2021 but will rise to £81.25 in 2021/2022.
The age-related addition is paid at three rates: higher, middle and lower.
The rates for 2020/2021 are as follows: £12.10, £6.70 and £6.70 for higher, middle and lower respectively.
The rates for 2021/2022 are as follows: £12.15, £6.75 and £6.75 for higher, middle and lower respectively.
The higher rate is paid to those under the age of 40 on the qualifying day, while the middle for those aged 40 to 49 and the lower aged 50 to 59 on the qualifying day.
No age-related addition is payable to those aged 60 and above.
The qualifying day for an age-related addition is the first day when you are unable to work.
There is a benefit cap to limit the total amount of benefit you can receive and SDA does contribute to this cap amount.
The benefit cap is £442.31 a week if you are a couple or have children and live in London.
The cap drops to £384.62 a week if you are a couple or have children and live outside London.
If you are a single person and live in London the benefit cap is £296.35 a week.