The Department for Work and Pensions (DWP) has confirmed plans to pay compensation of up to \u00a35,000 to around 57,000 people who were disadvantaged by their transition to Universal Credit. <\/p>\n\n\n\n
This payment scheme is aimed at individuals who, after moving from legacy benefits, lost their entitlement to certain disability-related premiums. While the scheme is expected to be completed by August 2025, the compensation addresses a long-standing issue that has affected many vulnerable claimants.<\/p>\n\n\n\n
This move follows a series of High Court rulings in 2018 and 2019, which found that the government had failed to adequately protect these claimants\u2019 incomes during the transition to Universal Credit. <\/p>\n\n\n\n
To qualify for compensation, claimants must have been receiving Universal Credit<\/a> that included a Severe Disability Premium (SDP) element, or have been entitled to such a payment before their transition to Universal Credit.\u00a0<\/p>\n\n\n\n In addition, they must meet one of the following criteria: they were entitled to an income-based legacy benefit with the Enhanced Disability Premium (EDP)<\/strong>, Disability Premium<\/strong>, or Disabled Child Premium<\/strong>.<\/p>\n\n\n\n The compensation covers the period between the claimant’s transition to Universal Credit and the implementation of new income protection regulations in February 2024. Payments will be calculated based on what claimants would have received had the new rules been in place at the time. <\/p>\n\n\n\n The monthly compensation rates vary, depending on the type of premium claimants <\/a>were entitled to, and can range from \u00a384 to \u00a3246 per month, with an additional \u00a3177 per child for those receiving the Disabled Child Premium.<\/p>\n\n\n\nPayment groups and timeline<\/strong><\/h3>\n\n\n\n