The Department for Work and Pensions (DWP) has launched a compensation scheme for thousands of benefit claimants who lost income when migrating to Universal Credit. The payments, which range between £200 and £3,000, aim to compensate individuals who previously received Severe Disability Premiums (SDP) and Enhanced Disability Premiums (EDP) but saw their support reduced after being moved onto Universal Credit.
More than 200 claimants have already received compensation, but legal experts believe that over 15,000 more people may also be entitled to a payout. Those affected are now being urged to come forward and check if they qualify.
Who Is Eligible for Compensation?
The compensation scheme applies to individuals who lost out on financial support after moving from legacy benefits to Universal Credit before January 2019. Many of these claimants previously received SDP or EDP, which provided additional financial support for people with severe disabilities or long-term health conditions.
However, when Universal Credit was introduced, there was no equivalent premium included in the new system, meaning thousands lost out on up to £180 per month in financial support. The DWP later introduced the SDP Gateway scheme to prevent further claimants from losing out, but those who had already made the switch were left at a disadvantage.
Ryan Bradshaw, a partner at Leigh Day’s human rights team, represented 275 claimants who successfully won compensation. He now believes thousands more may also be eligible, stating:
“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. A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place. The mistakes made here should never be repeated.”
How Much Compensation Will Claimants Receive?
The compensation amounts vary, with claimants so far receiving between £200 and £3,000, depending on the length of time they were affected and the level of support they lost. The payments aim to rectify the financial losses that occurred when people were moved onto Universal Credit without proper adjustments.
One claimant shared their experience, explaining how the compensation provided much-needed relief:
“When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope. The compensation has meant the difference between being able to access prepared meals which cover my nutritional needs versus buying the cheapest ready meals, which are not nutritionally balanced enough. I know people on relatively good incomes who are still struggling with the cost of living.”
How to Claim Compensation
The DWP has confirmed that it is now compensating affected claimants, though individuals must come forward to check if they are eligible. Claimants who believe they were impacted should:
- Check their past benefits history to see if they received SDP or EDP before migrating to Universal Credit.
- Contact the DWP directly to inquire about their eligibility.
- Seek legal advice if they believe they were affected but have not yet been offered compensation.
A DWP spokesperson confirmed:
“Following this ruling, the department has begun the process of compensating affected claimants.”
