The Department for Work and Pensions (DWP) has recently provided a significant update regarding compensation owed to thousands of disability benefit claimants.
These individuals are entitled to payments following the loss of disability premiums after being moved from legacy benefits to Universal Credit prior to January 2019.
According to a report from Manchester Evening News, many claimants saw a reduction in their monthly payments due to the transition, which led to financial hardship.
The DWP’s update outlines the ongoing efforts to resolve these issues, detailing the steps being taken to compensate those affected. The process is expected to be completed by September.
The Issue of Lost Disability Premiums
Affected claimants had previously received benefits such as Employment and Support Allowance (ESA). When moved from ‘legacy benefits’ to Universal Credit, many lost disability premiums like the ‘severe disability premium’ and the ‘enhanced disability premium.’ These changes resulted in a reduction of monthly payments for some, by up to £180, according to legal representatives.Legal Challenge and Compensation Scheme
The law firm Leigh Day successfully challenged this loss of income in court. As a result, the DWP agreed to compensate claimants for the financial loss, with estimates suggesting payments could exceed £5,000 per person. However, the DWP has confirmed that around 13,000 cases are still in the process of being cleared, and compensation will continue until these claims are resolved. In its annual report published earlier this month, the DWP stated:Unfortunately, some underpayments may be owed to customers who no longer have an active ESA claim and restrictions in data make it difficult to identify, assess and correct these errors.
Timeline for Resolution
The DWP has stated that it expects to resolve the remaining cases by September. So far, it is estimated that 57,000 people have been impacted, with the total cost of the repayment exercise projected to be £452 million.Legal Action and Additional Compensation
Leigh Day, the law firm that brought the case to court, has also represented other claimants, winning compensation settlements for 275 individuals. The compensation scheme now being implemented not only covers the lost benefits but also addresses the stress and emotional hardship experienced by claimants due to the error. Leigh Day solicitor Ryan Bradshaw noted:I am glad to have settled this claim on behalf of my clients. However, there are thousands of others who have been similarly affected who have not been in a position to bring a claim like this. They too will have experienced the loss of £180 a month after they were moved from legacy benefits on to Universal Credit in the years before January 2019. They too will have suffered unnecessary stress.
DWP’s Commitment to Resolving the Issue
A spokesperson for the DWP reiterated the department’s commitment to providing financial support as quickly as possible to those affected. They emphasized that steps have been taken to prevent such errors from happening again. Despite the difficulties in identifying some underpaid claims, the DWP is working to correct the errors and ensure fair compensation. The DWP spokesperson also told The Independent:We are fully committed to identifying claimants that are owed arrears and providing the financial support to which they are entitled as quickly as possible, with the majority of these cases having already been resolved. We are clear that errors like this one should not happen and have already taken action to avoid future errors.
