The Department for Work and Pensions (DWP) has announced that thousands of benefit claimants will receive compensation payments, following a series of legal battles. The payments, which could be worth up to £5,000 per person, are a result of High Court rulings in 2018 and 2019, along with a failed appeal by the DWP in 2020.
This decision comes after claimants lost their Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP) upon moving to Universal Credit. The legal action, led by Leigh Day solicitors, highlighted the financial hardship caused by these losses, ultimately leading to compensation for those affected.
Why Are Claimants Receiving Compensation?
The compensation payments stem from legal cases where benefit claimants argued that they suffered financially after being moved from legacy benefits to Universal Credit.
Leigh Day solicitors, representing 275 individuals, successfully argued that removing SDP and EDP payments was unlawful. As a result, the DWP was ordered to compensate affected individuals.
How Much Compensation Will Claimants Receive?
Eligible claimants can receive payments ranging from a few hundred pounds up to £5,000. The exact amount will depend on individual circumstances and how much financial loss they faced due to the benefit changes.
A spokesperson for the DWP confirmed:
“We have already started paying the money owed to all eligible customers who have moved to Universal Credit from the Enhanced Disability Premium.”
Introduction of the SDP Gateway
Following the legal rulings, the DWP introduced the SDP Gateway in January 2019. This measure prevented claimants from losing up to £180 per month when transitioning to Universal Credit. It was a temporary fix while the government worked on resolving the issue.
During a Work and Pensions Committee meeting, Neil Couling, the DWP’s Director General for Fraud, Disability, and Health, stated:
“The courts have decided on all of these, and we are now moving to implement the various judgements in these cases.”
He also acknowledged that the transitional protection provided was insufficient and needed to cover more elements to prevent financial hardship.
Who Will Receive Compensation?
The compensation payments will go to:
- Those who moved to Universal Credit from legacy benefits and lost their Severe Disability Premium (SDP) or Enhanced Disability Premium (EDP).
- Claimants affected by benefit changes between 2018 and 2019.
- Individuals who were financially impacted before the introduction of the SDP Gateway in January 2019.
What Should Claimants Do?
The DWP has already started processing payments, so eligible claimants should receive their compensation automatically. However, those who believe they are entitled to a payment but have not been contacted may need to reach out to the DWP or seek legal advice.
This compensation ruling is a significant victory for benefit claimants who faced financial difficulties due to the loss of SDP and EDP. After years of legal battles, the DWP has been ordered to pay what is owed, ensuring that affected individuals receive the support they were originally entitled to. If you think you might be eligible, it’s essential to stay informed and check with the DWP regarding your claim.
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FAQ’s
Who is eligible for DWP compensation?
Anyone who lost their Severe Disability Premium (SDP) or Enhanced Disability Premium (EDP) after moving to Universal Credit may qualify.
How much compensation will claimants receive?
Compensation payments range from a few hundred pounds to £5,000, depending on the individual’s financial loss.
Do I need to apply for the compensation?
No, eligible claimants will receive their payments automatically. However, if you believe you qualify but haven’t received a payment, contact the DWP.
What is the SDP Gateway?
The SDP Gateway, introduced in January 2019, helped prevent claimants from losing up to £180 per month when transitioning to Universal Credit.
Why is the DWP paying compensation?
A High Court ruling found that removing SDP and EDP payments from claimants switching to Universal Credit was unlawful.
When will claimants receive their compensation?
The DWP has started making payments, but processing all eligible claims may take some time.
