The Department for Work and Pensions (DWP) has provided an update for individuals claiming disability benefits who may be entitled to substantial compensation. Payments are being issued to those who previously received specific disability benefits like Employment and Support Allowance but lost disability premiums when transitioning to Universal Credit before January 2019.
Due to this change, many individuals missed out on severe disability premium (SDP) and enhanced disability premium (EDP) payments. Legal firm Leigh Day contested this income reduction in court, highlighting that some individuals experienced a monthly payment decrease of up to £180.
The DWP has agreed to compensate for the income loss, with Leigh Day estimating the value to exceed £5,000 per person. However, approximately 13,000 cases are still pending processing and approval.
In its recent annual report, the DWP acknowledged challenges in identifying and rectifying underpayments for customers no longer actively claiming ESA. The department anticipates resolving the remaining cases by September, affecting an estimated 57,000 individuals and costing approximately £452 million for the repayment process.
Following a successful High Court challenge by Leigh Day, 275 claimants received settlements ranging from £200 to £3,000 in damages. A DWP spokesperson emphasized the commitment to promptly provide arrears owed to claimants, noting that most cases have already been addressed and emphasizing efforts to prevent similar errors in the future.
Leigh Day solicitor Ryan Bradshaw expressed satisfaction with settling the claim for his clients but highlighted the thousands still impacted by the income loss following the transition to Universal Credit. The DWP is in the final stages of transferring all legacy benefit recipients to Universal Credit, including Housing Benefit, Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Child Tax Credit, Working Tax Credit, and Income Support.
