Disability benefit claimants affected by past Universal Credit transition errors may now be entitled to thousands in compensation. A High Court ruling has prompted the Department for Work and Pensions (DWP) to address income losses that impacted thousands before January 2019. Legal representatives estimate that some individuals could receive up to £5,000.
For years, claimants receiving the severe disability premium (SDP) and enhanced disability premium (EDP) faced unexpected financial cuts when they were moved to Universal Credit. Now, following a legal challenge, thousands may be eligible for compensation, with a deadline set for August 2025, according to law firm Leigh Day.
High Court Ruling Leads to Compensation Scheme
The issue stems from the transfer of disability benefit claimants to Universal Credit before January 2019, a process that led to the removal of SDP and EDP, reducing incomes by as much as £180 per month. Two individuals, known only as TP and AR, took legal action, arguing that they had unfairly lost financial support during the transition.
The High Court ruled in their favour, concluding that the loss of these premiums resulted in undue hardship. As a result, over 200 claimants have already received compensation ranging from £200 to £3,000, with additional payments expected, according to Leigh Day. The firm estimates that more than 15,000 individuals could qualify for further compensation.
According to Ryan Bradshaw, a solicitor at Leigh Day, the ruling acknowledges the financial and emotional stress caused by the DWP’s error. “Thousands of others who have been similarly affected have not been in a position to bring a claim like this,” he said. “They too will have experienced the loss of £180 a month after being moved from legacy benefits onto Universal Credit before January 2019.”
Claimants Face Financial Strain Due to Benefit Transition
One of those affected is Philippa, a 39-year-old from Chesterfield, who was receiving both SDP and EDP before being moved to Universal Credit in December 2018. She later discovered that she only received transitional protection for SDP, while her EDP entitlement was removed, reducing her income by £184.21 per month.
Speaking about the impact, she said: “When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope.” She explained that the loss of income forced her to buy cheaper, nutritionally inadequate meals.
Legal representatives argue that the DWP should implement a broader scheme to compensate all those affected. “A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place,” Bradshaw stated.
With a deadline of August 2025, claimants who believe they were affected by this issue are encouraged to seek legal advice to determine their eligibility for compensation.
