Lawyers who advocated for the Department for Work and Pensions (DWP) to establish a compensation scheme for a large number of benefit claimants are now seeking clarity on payment-related issues. The DWP initiated the scheme earlier this year for disabled individuals who switched from “legacy benefits” like Employment and Support Allowance (ESA) to Universal Credit without transitional protections in place.
These claimants lost their ‘Severe Disability Premium’ (SDP) during the transition, as the DWP failed to adequately safeguard their incomes. Leigh Day lawyers, who presented the cases, are urging the DWP to reveal how they calculate the payments, mentioning instances where the payments may not be legally accurate.
Ryan Bradshaw, a lawyer at Leigh Day, highlighted cases where the DWP informed claimants that the compensation payments might affect their bank balances and lead to benefit reductions. The estimated compensation per person could exceed £5,000, with the total cost of the repayment exercise reported at £452 million.
Although most of the 57,000 affected individuals have received compensation, the DWP confirmed it is working on resolving around 13,000 more complex cases by September. Those potentially eligible for compensation are encouraged to make a claim, which will be assessed on a case-by-case basis by the DWP.
Ryan Bradshaw emphasized the need for a transparent calculation method for benefits claimants who missed out on up to £180 per month before 2019. The DWP spokesperson assured that efforts are ongoing to identify and compensate eligible claimants who transitioned to Universal Credit due to changes in their circumstances.
To qualify for compensation, claimants must have been receiving or previously received Universal Credit with a transitional SDP, or would have received it if not removed. Before transitioning to Universal Credit, claimants must have met certain conditions, and the back payments will be based on what they would have been entitled to under the new regulations.
The compensation rates will vary for each month between the transition to Universal Credit and the introduction of new income protection rules in February 2024. The monthly rates will reflect what claimants would have received had the new rules been in place during their transition.
