LRD guides and handbook March 2013

State benefits and tax credits 2013

Chapter 3

Severe Disablement Allowance and ESA

Severe Disablement Allowance (SDA) was a state benefit for those below the state pension age who were assessed as being unable to work because of illness or disability. It was abolished altogether in 2001 but if you were already getting Severe Disablement Allowance, you carried on getting it.

However, people in receipt of SDA are now required to be re-assessed to see if they are capable of work or eligible for ESA. If the re-assessment shows you’re capable of working, your Severe Disablement Allowance will stop. Jobcentre Plus will then discuss your next steps, including claiming Jobseeker’s Allowance. If the re-assessment shows you can’t work, you’ll be transferred automatically onto ESA.

Note: From April 2013 a limit will be put on the total amount of benefit that most people aged 16 to 64 can get. This is called the Benefit Cap.