Thousands of Benefit Claimants Set to Score Up to £5,000 Pay-Outs
The Department for Work and Pensions (DWP) has confirmed that 57,000 claimants will get compensation following court rulings that slammed past benefit deductions as illegal. Payments of up to £5,000 will be handed out after a string of legal battles between 2018 and 2019, ending with the DWP’s failed appeal at the Court of Appeal in 2020.
Who’s Getting the Cash?
The compensation targets claimants who lost their Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP) while switching from legacy benefits to Universal Credit. The DWP has started processing payments already.
Legal firm Leigh Day, which fought for 275 claimants, warns some could pocket as much as £5,000.
Legal Win for Disabled Claimants
Leigh Day argued successfully in the High Court that removing SDP and EDP during the Universal Credit switch was unlawful. The ruling led to the creation of the SDP Gateway in January 2019, stopping some from losing up to £180 a month straight away.
“I am glad to have settled this claim on behalf of my clients,” said lawyer Ryan Bradshaw. “However, there are thousands of others who have been similarly affected who have not been in a position to bring a claim like this.”
Who Qualifies for Compensation?
DWP’s Director General for Fraud, Disability, and Health, Neil Couling, revealed three groups eligible for payouts:
- Claimants still on Universal Credit owed transitional SDP payments from 2020 onwards.
- Around 15,000 claimants owed payments between 2018 and 2020 who remain on Universal Credit.
- Some 7,000 people who switched to Universal Credit before September 2019 but are no longer receiving it.
When Will the Money Land?
The first batch of roughly 35,000 claimants will get paid fastest, as their cases are handled automatically through DWP’s digital system.
The other groups, with mixed digital and manual records, can expect delays while DWP verifies their claims. All payments should be completed by August 2025.
DWP’s Official Response
Speaking to the Work and Pensions Committee, Neil Couling said:
“The courts have decided on all of these, and we are now moving to implement the various judgments of the courts in those cases.”
“Because the courts decided that the transitional protection we were providing was not large enough, it needed to cover other elements.”
What Next for Claimants?
If you think you’re eligible, now’s the time to check your records and contact the DWP for details. This landmark decision could open doors for more claims against Universal Credit deductions as campaigners push for better support for disabled benefit claimants.
