The scrapping of disability payments for people moving on to Universal Credit hit many recipients hard – now thousands could be entitled to money back
Up to 15,000 people could be in line to share millions of pounds worth of backdated disability benefits, a law firm claims.
The issue relates to those who received Enhanced Disability Premiums prior to February last year. After that date, the Department for Work and Pensions (DWP) put in place a system – called “transitional protection” – to compensate those who were previously getting the premium but who lost it when they moved onto Universal Credit.
Before that, claimants who were forced on to Universal Credit lost out on the monthly payment of £70. Law firm Leigh Day says the sudden loss of disability payments has had a big impact those shifted onto Universal Credit since it was rolled out. Ryan Bradshaw, a human rights team partner at the firm, took up the case of 275 claimants who said they suffered a drop in their income after moving on to Universal Credit.
A settlement was reached with DWP in which it agreed to pay claimants compensation for the stress and injury to feelings they had suffered. The last few of those payments – of between £200 and £3,000 – are in the process of being paid.
But the DWP agreed to implement a scheme to repay claimants who were left out of pocket before the “transitional protection” came in last February. Mr Bradshaw estimates these could be worth in excess of £5,000 per person.
“I am glad to have settled this claim on behalf of my clients,” he said. “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 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.”
Philippa, from Chesterfield, is among those to receive compensation. The 39-year-old’s career has included gaps due to conditions such as a chronic autoimmune condition fibromyalgia, which causes pain throughout her body, dehydrated discs in her spine, and brain fog.
She received two forms of disability payments but was moved on to Universal Credit in December 2018. As a result, Philippa lost a combined £184.21 a month from her income. She appealed and, after two years it reached the tribunal. As a result, she now receives Personal Independence Payments (PIPs) and has been put back on legacy benefits as well as Universal Credit.
She said: “The compensation 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.”
A DWP spokesperson said: “We have already started paying the money owed to all eligible customers who have moved to Universal Credit from the Enhanced Disability Premium.” However, the response led to more confusion around when it had started and who had received payments. The DWP also did not respond to questions about how many people it expected to be included, or the estimated bill.
It comes after a report from MPs last week warned benefit claimants received £4billion less than they were entitled to last year. The Public Accounts Committee also said people claiming disability benefits were getting a poor service, as they wait on average 10 times longer for their calls to be answered. The highest rates of underpayment were for disability benefits such as PIPs and Disability Living Allowance.
