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This area uses a fill space attachment, ie it sticks to the edge of the header, footer and tree menu. It uses an all round inset value too so you can't just inset vertically.
It makes me wonder why it's such a gap in the first place mind. Have you done something weird with the rest of your layout? Does the header or footer graphic contain an area of blank space? Have you already inset the SCA inset value?
Something is filling that space, stopping the SCA doing so.
Hmm, well I was thinking maybe the containers are to big for the header and footer maybe? I'm not too sure how to go about fixing the problem. Anyway below is a screenshot of the skin i'm working on. As you can see it is obvious where needs filling.
Well from that I can guess what your issue might be. Is your header all the way down to the bottom of the semi circle where it says everton under the badge? The SCA will stick to the lowest part of the header.
Your footer - have you just set that to a certain height or are the graphics for it filled with blank space?
Fixing it...
Easiest way would be to make the tree run from top of the screen to the bottom then put the badge in the sections.xml instead.