DWP £5,000 can get only ‘three groups’ – 57,000 Claimants will receive compensation payments following a court ruling

The Department for Work and Pensions (DWP) has announced that 57,000 benefit claimants will receive compensation payments following a court ruling. These payments range from a few hundred pounds to as much as £5,000. The decision comes after multiple court rulings between 2018 and 2020, which found that certain claimants were unfairly disadvantaged when moved to Universal Credit. Here’s a complete breakdown of what happened, who qualifies, and when payments will be made.

Why Are Claimants Receiving Compensation?

The payments stem from a legal battle led by Leigh Day Solicitors on behalf of 275 people who lost their Severe Disability Premium (SDP) when transferred to Universal Credit.

The case revolved around the fact that when these individuals switched from legacy benefits to Universal Credit (UC), they lost significant financial support. The High Court ruled that this loss was unlawful, and the Court of Appeal upheld this decision in 2020.

The DWP attempted to challenge the ruling but failed, leading to a decision to compensate all affected claimants.

How Much Compensation Will Claimants Receive?

The 57,000 claimants identified by the DWP will receive payments ranging from:

• A few hundred pounds to
• Up to £5,000, depending on individual circumstances and the duration of lost payments.

The exact amount varies based on how long the person was affected and the amount of SDP or Enhanced Disability Premium (EDP) they lost during the transfer to Universal Credit.

Who Qualifies for the Compensation?

The DWP has divided eligible claimants into three groups:

1. Claimants receiving an additional transitional SDP element from 2020 onwards
   • These individuals are still receiving Universal Credit and were eligible for the transitional element introduced after the court ruling.
2. Claimants owed payments from 2018 to 2020
   • These claimants continued to receive Universal Credit but did not receive the correct amount before 2020.
3. Claimants no longer on Universal Credit but affected by the changes since 2018
   • Even if someone is no longer claiming Universal Credit, they may still qualify for backdated compensation if they lost SDP or EDP during the transition.

The Legal Background: How Did We Get Here?

The compensation payments follow two major legal victories:

• 2018: The High Court ruled that removing SDP and EDP from claimants during the transfer to Universal Credit was unlawful.
• 2019: The court reaffirmed the decision after a second challenge.
• 2020: The Court of Appeal dismissed the DWP’s attempt to overturn the rulings.

Following these decisions, the SDP Gateway was introduced in January 2019 to prevent claimants from immediately losing up to £180 per month when moving to Universal Credit.

What Did the DWP Say About the Payments?

A DWP spokesperson confirmed that payments had already begun, stating:

“We have already started paying the money owed to all eligible customers who have moved to Universal Credit from the Enhanced Disability Premium.”

Additionally, Neil Couling, the DWP’s Director General for Fraud, Disability & Health, told MPs that the department was now implementing the court’s judgment, explaining:

“The courts have decided, and we are now moving to implement these judgments. We are ensuring that the transitional protection we provided now covers other necessary elements.”

How Will Claimants Receive Their Payments?

The DWP has started issuing payments to those who qualify. If you’re eligible, the payment will be made automatically into your bank account if you still receive Universal Credit.

For those who no longer claim benefits, the DWP will contact you to arrange the payment.

How to Check If You’re Eligible

If you believe you might qualify for compensation but haven’t been contacted yet, here’s what you can do:

1. Log in to your Universal Credit account to check for messages or updates.
2. Contact the DWP if you think you’re eligible but haven’t received any payment.
3. Keep an eye out for official letters or communications about your compensation.

This compensation payout represents a significant victory for thousands of vulnerable claimants who were unfairly affected by the transition to Universal Credit. The court’s decision ensures that individuals with disabilities are protected from losing essential financial support in the future.

The DWP has committed to implementing the ruling fully and ensuring similar issues don’t arise during the continued rollout of Universal Credit. If you or someone you know lost SDP or EDP during this transition, it’s crucial to stay informed and check your eligibility for this compensation.

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