The issue relates to benefit claimants who lost disability premiums after they were moved to Universal Credit before January 2019
Thousands of disability benefit claimants could be entitled to up to £5,000 in compensation from the Department for Work and Pensions (DWP) following a legal battle.
The issue relates to claimants who lost disability premiums after they were moved to Universal Credit before January 2019. As a result, some people lost out on severe disability premium (SDP) and enhanced disability premium (EDP) and saw their payments drop by up to £180 a month.
The loss of income was challenged in the High Court by two benefits claimants, known as TP and AR, who were represented by law firm Leigh Day. The court ruled in favour of the benefit claimants, and more than 200 people were subsequently awarded between £200 and £3,000 in a damages.
The DWP has agreed to compensate for the loss of income, which Leigh Day estimates could be worth in excess of £5,000 per person, with a deadline of August 2025. The law firm estimates more than 15,000 benefits claimants could be eligible for payments. Philippa, 39, from Chesterfield received SDP and EDP claimant but was moved to Universal Credit in December 2018.
Philippa later discovered that she was only receiving transitional protection for SDP, but nothing for EDP, and said her income dropped by £184.21 a month. Philippa said: “When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope.
“The compensation has meant the difference between being able to access prepared meals which cover my nutritional needs, versus buying the cheapest ready meals which are not nutritionally balanced enough. I know people on relatively good incomes who are still struggling with the cost of living.”
Ryan Bradshaw of Leigh Day said: “I am glad to have settled this claim on behalf of my clients. However, there are thousands of others who have been similarly affected who have not been in a position to bring a claim like this. They too will have experienced the loss of £180 a month after they were moved from legacy benefits on to universal credit in the years before January 2019.
“They too will have suffered unnecessary stress. A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place. The mistakes made here should never be repeated.”
