The Department for Work and Pensions (DWP) has provided an update for individuals receiving disability benefits who may be entitled to significant compensation. These payments are directed towards those who previously received specific disability benefits like Employment and Support Allowance but lost disability premiums upon transitioning to Universal Credit before January 2019.
Due to this transition, many individuals missed out on severe disability premium (SDP) and enhanced disability premium (EDP). Legal firm Leigh Day contested this income reduction in court, highlighting that some individuals experienced a monthly payment decrease of up to £180.
The DWP has agreed to reimburse for the income loss, with Leigh Day approximating the compensation to exceed £5,000 per person. Nevertheless, the DWP has disclosed that approximately 13,000 cases are pending resolution.
In their recent annual report, the DWP acknowledged challenges in identifying and correcting underpayments for customers no longer actively claiming ESA due to data limitations. The DWP anticipates resolving the remaining cases by September and estimates that around 57,000 individuals were affected, projecting a total repayment cost of £452 million.
Following a successful High Court challenge by Leigh Day, 275 claimants received settlements ranging from £200 to £3,000 in damages. A DWP spokesperson affirmed the commitment to promptly provide entitled financial support to claimants owed arrears, emphasizing efforts to prevent similar errors in the future.
Leigh Day solicitor Ryan Bradshaw expressed satisfaction in settling the claim on behalf of clients but highlighted the plight of thousands more affected individuals facing financial losses and stress due to the transition to Universal Credit before January 2019.
As the DWP finalizes the migration of legacy benefits recipients to Universal Credit, legacy benefits like Housing Benefit, Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Child Tax Credit, Working Tax Credit, and Income Support are being phased out.
