As many as 13,000 benefit claimants could be owed thousands of pounds in compensation after the Department for Work and Pensions (DWP) settled a major legal case.
The case involved disabled individuals who lost financial support when moving from legacy benefits to Universal Credit before September 2019.
Compensation
The High Court ruled that the DWP failed to protect the income of certain disability benefit claimants, leading to financial hardship. Over 200 claimants have already received payments ranging from £200 to £3,000, but thousands more could now be eligible for compensation exceeding £5,000.
The compensation covers non-financial damages, including stress and emotional distress suffered due to the sudden loss of benefits.
Disability
Two key disability-related benefits were removed when claimants were switched to Universal Credit:
- Severe Disability Premium (SDP): Provided additional support for those with severe disabilities.
- Enhanced Disability Premium (EDP): Worth up to £180 per month, offering extra financial aid for disabled individuals.
The SDP Gateway was only introduced after a successful High Court challenge in 2019, but by then, many had already lost critical income.
Legal
The legal challenge, led by law firm Leigh Day, resulted in a settlement with the DWP covering 275 claimants so far. However, lawyer Ryan Bradshaw believes thousands more could be eligible for compensation.
Bradshaw stated:
“A suitable scheme compensating all the people who have endured discrimination at the hands of the DWP ought to be urgently put in place.”
Case
One claimant, Philippa, 39, from Chesterfield, suffers from fibromyalgia and other chronic conditions. Losing her DWP payments worsened her health, making it harder to afford essentials like proper nutrition.
She described the emotional toll of waiting for benefits decisions, saying:
“When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope.”
For her, the compensation has meant being able to afford nutritionally balanced meals, rather than surviving on cheap, unhealthy food.
DWP
A DWP spokesperson confirmed that the department has started compensating affected claimants, but further action may be needed to ensure all eligible individuals receive payments.
If you lost disability benefits after being moved to Universal Credit before September 2019, you may be entitled to compensation. Seeking legal advice or contacting the DWP could help determine eligibility.
FAQs
Who is eligible for Universal Credit compensation?
Disabled claimants moved from legacy benefits to Universal Credit before 2019.
How much compensation could claimants receive?
Payments are estimated to be over £5,000 per claimant.
Which benefits were removed in the transition?
Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP).
How many people could be affected?
Up to 13,000 benefit claimants may be eligible for compensation.
What is the DWP doing about the issue?
The DWP has begun compensating affected claimants after the court ruling.
