Tens of thousands of benefit claimants are set to receive compensation from the Department for Work and Pensions (DWP<\/strong>) following a court ruling. The payments, which could reach \u00a35,000 per person, will be issued to those who lost their Severe Disability Premiums (SDP)<\/strong> when moving to Universal Credit<\/strong>.<\/p>\n\n\n\n
The compensation applies to approximately 57,000 people<\/strong> who were financially disadvantaged by the transition from legacy benefits<\/strong>. According to Leigh Day<\/strong>, the law firm representing the claimants, the payments will address income losses suffered between 2018 and 2020<\/strong>, as well as ongoing shortfalls since 2020.<\/p>\n\n\n\n
The legal battle stems from the government\u2019s failure to maintain financial protections for disabled claimants during the shift to Universal Credit<\/a>. <\/p>\n\n\n\n
Previously, individuals receiving Employment and Support Allowance (ESA<\/a>)<\/strong> and other legacy benefits could qualify for SDP<\/strong>, an additional sum to cover extra living costs. However, those who transitioned to Universal Credit<\/strong> found that their SDP entitlement was removed.<\/p>\n\n\n\n
According to Leigh Day<\/a><\/strong>, the High Court ruled that the DWP\u2019s transitional protection measures<\/strong> were inadequate, leaving thousands worse off. The ruling mandates that affected claimants receive compensation to cover the lost benefits. <\/p>\n\n\n\n
Neil Couling<\/a><\/strong>, a senior official at DWP, confirmed the payments, stating: \u201cThe courts have decided on all of these, and we are now moving to implement the various judgements of the courts in those cases.\u201d<\/em><\/p>\n\n\n\n
The three groups<\/strong> eligible for compensation include those:<\/p>\n\n\n\n
The loss of Severe Disability Premiums<\/strong> had a significant impact on claimants, many of whom rely on benefits<\/strong> to cover essential expenses. <\/p>\n\n\n\n
Philippa, 39, from Chesterfield<\/strong>, told Leigh Day<\/strong>: \u201cWhen you\u2019re on benefits, you don\u2019t feel secure. Every day you wait for the little brown envelope.\u201d<\/em> She explained that the loss of SDP<\/strong> meant struggling to afford nutritious meals and basic necessities.<\/p>\n\n\n\n
The ruling could set a precedent for future benefit-related legal challenges<\/strong>, as campaigners continue to scrutinise the DWP\u2019s<\/strong> policies. The department has stated that it will begin processing payments later this year<\/strong>, though a specific timeline has not yet been confirmed.<\/p>\n\n\n\n
Claimants are advised to await official correspondence<\/strong> from the DWP<\/strong> regarding eligibility and payment procedures. Legal representatives continue to urge affected individuals to seek guidance to ensure they receive the correct amount.<\/p>\n\n\n\n
With the DWP<\/strong> implementing both compensation payments and stricter sanction guidelines<\/a><\/strong>, Universal Credit claimants face a period of significant change. While some individuals are set to receive up to \u00a35,000<\/strong> in compensation due to past financial losses, others could see their benefits reduced<\/strong> if they fail to meet work-related requirements.<\/p>\n\n\n\n