The Department for Work and Pensions (DWP) has confirmed that 57,000 benefit claimants will receive compensation payments of up to £5,000 following a series of court rulings that deemed past deductions from their benefits to be unlawful.
The payments come after legal battles between 2018 and 2019, culminating in an unsuccessful appeal by the DWP at the Court of Appeal in 2020.
Who Will Receive Compensation?
The compensation applies to claimants who lost their Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP) when transitioning from legacy benefits to Universal Credit.
The DWP has already begun processing payments, with legal firm Leigh Day, which represented 275 claimants in the case, estimating that some individuals could receive as much as £5,000.
Legal Victory for Claimants
Leigh Day successfully argued in the High Court that removing SDP and EDP during the transition to Universal Credit was unlawful. This ruling led to the creation of the SDP Gateway in January 2019, which prevented some claimants from facing immediate reductions of up to £180 per month.
“I am glad to have settled this claim on behalf of my clients,” said Ryan Bradshaw, the lawyer who represented the affected individuals. “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 Is Eligible for Compensation?
The DWP’s Director General for Fraud, Disability, and Health, Neil Couling, explained that three groups of people will receive payments:
- Those still receiving Universal Credit who are owed additional SDP transitional payments from 2020 onwards.
- Around 15,000 claimants who are owed payments between 2018 and 2020 and remain on Universal Credit.
- Approximately 7,000 people who moved to Universal Credit before September 2019 but are no longer receiving it.
When Will Payments Be Made?
The first group of around 35,000 people will receive their payments first, as their cases can be handled automatically through the DWP’s digital system.
However, the second and third groups—who have a mix of digital and clerical records—will face longer processing times while the department works to verify their cases.
The DWP aims to complete all payments by August 2025.
DWP’s Response
Speaking to the Work and Pensions Committee, Neil Couling stated:
“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.”
Next Steps
Anyone who believes they may be eligible for compensation is advised to check their records and contact the DWP for further details.
This landmark ruling could pave the way for further challenges against Universal Credit deductions, as campaigners continue to advocate for greater support for disabled benefit claimants.
