Disabled People to Get Massive £5,000 Payout from DWP – Are You Eligible?

Thousands of people in the UK who lost out on disability benefits when they moved to Universal Credit will receive compensation from the Department for Work and Pensions (DWP). Payments could be as high as £5,000, with the DWP aiming to finish the process by August this year.

Why Are These Payments Being Made?

The payments are for people who were on ‘legacy benefits’ and lost their Severe Disability Premiums (SDP) when they switched to Universal Credit. Two High Court rulings between 2018 and 2019 found that the government didn’t do enough to protect their incomes during this change.

In 2020, the DWP tried to challenge these rulings but failed. The courts found that some claimants lost about £180 each month due to this transition.

How Much Will People Receive?

Law firm Leigh Day, which represented many claimants, says each person could get more than £5,000. The payment amounts will depend on how long each person was affected.

Who Will Get the Payments?

Neil Couling, a senior DWP official, explained that three groups of people will receive payments:

1. People on Universal Credit from 2020 onwards – Around 35,000 people in this group will likely be paid first because their payments can be processed quickly using the digital system.
2. People on Universal Credit between 2018 and 2020 – About 15,000 people in this group will receive payments, but their records are a mix of digital and paper, making it harder to process.
3. People affected from 2018 onwards who no longer receive Universal Credit – Around 7,000 people in this group will also get payments, though their mixed records may slow down the process.

What Led to This Decision?

Earlier this month, the DWP settled a legal case brought by Leigh Day on behalf of 275 claimants. Each person received between £200 and £3,000 in damages.

One claimant, Philippa, 39, from Chesterfield, has fibromyalgia, a painful autoimmune condition. Losing her disability payments made it hard for her to afford basic needs. She shared that the compensation now helps her buy proper meals instead of cheap, unhealthy options.

Reaction from Leigh Day

Ryan Bradshaw, a partner at Leigh Day, said that it is disappointing that severely disabled people are still waiting for proper compensation six years after the first case was won. He criticised the rollout of Universal Credit, saying many disabled people are worse off now than before. On average, his most disabled clients are £2,000 a year poorer under Universal Credit, even without considering inflation.

Bradshaw urged the DWP to maintain full disability premiums for those who qualify and ensure no one is worse off under Universal Credit.

This compensation scheme aims to correct past mistakes and ensure disabled claimants receive the support they deserve. While it has taken years of legal battles, the upcoming payments bring hope to many who have struggled due to lost benefits.

SOURCE

FAQ