Lawyers who successfully advocated for the Department for Work and Pensions (DWP) to establish a compensation scheme for tens of thousands of benefit claimants are now seeking clarity on payment-related issues. The DWP initiated the scheme earlier this year for disabled individuals who transitioned 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, responsible for pushing these cases forward, are demanding transparency from the DWP regarding payment calculations to address potential errors in claimants’ compensation.
Ryan Bradshaw, a lawyer at Leigh Day, highlighted instances where the DWP notified claimants that compensation payments might impact their bank balances and benefit eligibility. The DWP estimates that compensation per person could exceed £5,000, with a total repayment cost of £452 million.
Although the majority of the 57,000 affected individuals have received compensation, the DWP confirmed ongoing efforts to resolve around 13,000 more complex cases by September. Individuals who suspect they are eligible for compensation are encouraged to make a claim, as the DWP reassures that claims will be assessed on a case-by-case basis.
Ryan Bradshaw emphasized the need for a clear and consistent calculation method for benefits claimants who missed out on up to £180 a month before 2019. A DWP spokesperson reiterated the commitment to identifying and compensating eligible claimants swiftly, acknowledging the complexity of the process.
To qualify for compensation, claimants must have received Universal Credit with a transitional SDP or met specified conditions before transitioning. The compensation will be based on potential entitlements had the new rules been in effect during the transition period. Monthly rates will vary based on the specific circumstances of each claimant.
The DWP is diligently working to ensure all eligible claimants receive their rightful compensation promptly.
