DWP to pay £5,000 compensation to 57,000 benefit...

Following a court decision, the Department for Work and Pensions (DWP) has confirmed that 57,000 benefit claimants will receive payouts totalling up to £5,000. But there are more cases that need reimbursing than initially thought. So, what benefit claimants are eligible for DWP compensation and how can you check if you qualify?. Many people who were receiving specific disability benefits and switched from “legacy benefits” to Universal Credit in recent years will receive the payments.

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It was discovered that the DWP had failed to adequately secure these claimants' incomes, resulting in the loss of “severe disability premiums” (SDP) during the transfer. The news comes after the High Court ruled in two cases in 2018 and 2019 at the Court of Appeal in 2020. It ruled that the Government had failed claimants, who were found to have lost “severe disability premiums” (SDP) in the move, with the DWP not doing enough to ensure their incomes were protected.

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It was discovered that the monthly revenue loss in both situations came to about £180. According to the law firm Leigh Day, which brought the cases, each person might receive compensation worth more than £5,000. “Because the courts decided that the transitional protection we were providing was not large enough, it needed to cover other elements.”. According to Leith Day, the DWP has committed to establishing a legal compensation plan by August 2025 in order to reimburse claimants.

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Mr Couling confirmed three categories of individuals eligible for compensation to the Independent. It includes people who continue to receive Universal Credit but are owed additional transitional SDP elements from 2020 onwards, people due an additional amount for the period between 2018 and 2020, and who continue to receive the benefit, and people due an additional amount relating from 2018 onwards who are no longer on Universal Credit.

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Approximately 35,000 individuals are in the first group, and they are probably going to receive the payouts first. Due to the fact that payments can be made automatically through the digital system, Mr Couling claims that their cases will be the “easiest” to process. A solution is reportedly being worked on to address the second and third group. A DWP spokesperson confirmed: "Following this ruling, the department has begun the process of compensating affected claimants.".