The Department for Work and Pensions is offering up to £5,000 compensation to thousands hit by a Universal Credit change. The DWP moved claimants from legacy benefits to Universal Credit – but they missed out on cash.
Now, a new compensation scheme has been set up with around 57,000 benefit claimants set to benefit. The payments, which could reach as much as £5,000 per person, will be paid out by the end of the summer, a minister for Universal Credit has said.
The DWP is paying out cash to claimants who lost “severe disability premiums” (SDP) during their move to Universal Credit. In February, Neil Couling, DWP’s senior responsible owner for Universal Credit, said claimants must be receiving (or have received) Universal Credit that includes an SDP element or transitional amount.
READ MORE 11 counties in England face ‘3cm per hour’ snow next week with 723 miles covered
They must also have met one of three conditions before moving to Universal Credit. The first condition is having been entitled to an income-based legacy benefit that included an Enhanced Disability Premium.
The second condition is claimants having been entitled to an income-based legacy benefit that included the Disability Premium. The third condition is having been entitled to an income-based legacy benefit with the Disabled Child Premium, or Child Tax Credit with the Disabled Child Element (non-severely disabled category).
Speaking about the rulings, he said: “The courts have decided on all of these, and we are now moving to implement the various judgements of the courts in those cases.
“Because the courts decided that the transitional protection we were providing was not large enough, it needed to cover other elements.” LLeigh Day partner Ryan Bradshaw represented claimants across the past cases. Responding to the new details of the compensation scheme earlier this month, he said: “It is regrettable that six years since we won our first case regarding the removal of Disability Premiums under Universal Credit the DWP is still making severely disabled people wait for proper compensation.
“The roll out of Universal Credit has been a disaster for many disabled people, who find themselves worse off when transitional protections inevitably end. My most severely disabled clients are generally £2,000 a year worse off now than they were before they claimed Universal Credit and that is without adjusting for inflationary pressure.
“The solution to this is simple, instead of splitting hairs, spinning statistics and delaying progress the DWP should ensure disability premiums are maintained in full for those who qualify for them and that no-one is worse off on Universal Credit either short term or long term.