State pensioners who lost out financially following the abolition of the adult dependency increase (ADI) payments are being encouraged to claim compensation from the Department for Work and Pensions (DWP), after a recent ruling highlighted significant failures in the department’s communication practices.
Many individuals who were living abroad at the time were particularly affected by the delayed notifications, resulting in unexpected financial hardship.
According to a report by Birmingham Mail, those who qualified for ADI payments prior to their removal could be eligible for a payout if they can demonstrate that late notification adversely impacted them. The DWP is now reviewing individual claims.
What Was the Adult Dependency Increase?
The adult dependency increase (ADI) was an additional payment added to the state pension for pensioners who had an adult dependent. The payment was worth either £41.90 or £70 per week, depending on individual circumstances.
It was a vital financial supplement for many households, significantly supporting annual incomes.
The ADI payments were abolished on 6 April 2020. This change led to an annual income loss of up to £3,640 for some pensioners.
Although the DWP sent letters twice in 2019 to inform claimants about the upcoming removal, concerns have emerged regarding the adequacy and timing of these communications, especially for claimants residing outside Great Britain.
Findings of Maladministration by the Parliamentary Ombudsman
Earlier this year, a report by the Parliamentary and Health Service Ombudsman concluded that the DWP had failed to properly notify overseas claimants about the termination of the ADI payments within a reasonable timeframe.
This failure was classified as “maladministration,” raising serious questions about the DWP‘s communication practices and their consequences for pensioners living abroad.
Compensation is potentially available for individuals who meet the following conditions :
- They were receiving ADI payments that ceased on 6 April 2020.
- They lived outside Great Britain for any time between 6 April 2010 and 6 April 2020.
- They can demonstrate that the delay in receiving notification adversely affected them financially.
Eligible individuals are instructed to contact the DWP either via email at ministers@dwp.gov.uk or by calling 0800 731 7898 to begin a review of their case.
In an official statement, the DWP said :
If you feel you were adversely affected by the removal of an ADI, due to when you received notification after 6 April 2010 that it was going to end, then you may be eligible for compensation. We will review your case and contact you if we need more information. After the review, we will write to you to let you know if you are eligible for a compensation payment.
