The Department for Work and Pensions DWP has confirmed that 57,000 benefit claimants will receive compensation payments of up to £5,000 following a court ruling.
The payouts come after a high court challenge brought by the law firm Leigh Day on behalf of over 200 claimants. The case revealed that many people lost out on financial support when transitioning from legacy benefits to Universal Credit, particularly those receiving severe disability premiums SDP.
While initial payments were awarded to claimants earlier this month, it has now been confirmed that more people are eligible than originally thought.
Who is Eligible
The compensation is for people who were receiving disability benefits and were moved from legacy benefits to Universal Credit.
The High Court and Court of Appeal ruled that the DWP failed to protect these claimants’ incomes, leading to financial losses when their severe disability premiums SDP were not carried over during the transition.
- It was found that some claimants lost around £180 per month in support
- Compensation payments could exceed £5,000 per person, according to Leigh Day
Neil Couling, the senior official for Universal Credit at the DWP, stated that transitional protections provided were not sufficient, which led to the legal decision in favor of affected claimants.
Payments
The DWP has committed to setting up a legal compensation plan by August 2025 to reimburse eligible claimants.
How to Check
According to the DWP, there are three categories of people eligible for payments
- People who still receive Universal Credit and are owed additional transitional SDP elements from 2020 onwards
- People who were underpaid between 2018 and 2020 and still receive Universal Credit
- People who were underpaid from 2018 onwards but are no longer on Universal Credit
Around 35,000 individuals fall into the first category and are expected to receive payments first.
Payments to these claimants will be processed automatically through the Universal Credit system. The DWP is working on a solution to compensate those in the second and third categories.
To check if you qualify, visit the DWP website or contact them directly.
How to Claim
If you believe you are eligible for compensation but have not been notified, you should contact the DWP via
- Phone
- The DWP’s official website
A DWP spokesperson confirmed that the department has started the compensation process following the court ruling.
Claimants are encouraged to stay informed and check eligibility to ensure they receive the financial support they are owed.
FAQs
Who is eligible for DWP compensation?
Claimants who lost severe disability premiums when moving to Universal Credit.
How much compensation could I receive?
Payments could be up to £5,000 per person, depending on losses.
When will the compensation be paid?
The DWP plans to process payments by August 2025.
How can I check if I qualify?
Visit the DWP website or contact them via phone or email.
Will payments be automatic?
Some payments will be automatic, while others require a claims process.
