Arrears of SDP and housing benefit review

My relative got arrears of severe disability premium in December 2022 amounting to £16,300. In the letter it says this will not count towards savings until the end of the ESA claim. However he has to do a housing benefit review. Will this amount affect his housing benefit in the review? Also, if he is migrated to UC in the coming year will this amount be disregarded in that claim? Thank you for your advice

The letter did not give a reason, but I'm guessing it was an error because it was back dated for 4 years. It just said it was arrears of SDP. It might be that when PIP was awarded, SDP was not awarded at that time and somebody realised later. I'm not sure if SDP is automatically awarded once PIP is awarded.

I understand that If you are on ESA and you get awarded PIP the DWP should contact you to collect information to see if you are entitled to severe disability premium.

I imagine someone at the DWP in 2022 noticed that he was on PIP and did not have SDP therefore they contacted him, asked him some questions, realised he was entitled to it and backdated it to the start of his PIP award which was 2018.

I'm not sure if this makes it their error for not having contacted him sooner. I will try to ask them, but I doubt they will admit it is their error, if that is what I am trying to establish.

Thank you for your advice.

Although it doesn't give a reason in the letter it does say that this capital will be disregarded for the remainder of the award of the income related benefit benefit or until it is spent whichever is sooner.

As long as this statement applies to housing benefit and the migration to UC then I guess this is okay.