An estimated 15,000 people may be eligible to share millions of pounds in backdated disability benefits following a legal settlement involving the Department for Work and Pensions (DWP).
The issue affects claimants who previously received Enhanced Disability Premiums but lost the payments when transitioning to Universal Credit before a compensation system, known as “transitional protection”, was introduced in February 2022.
Background of the Case
The Enhanced Disability Premium was a crucial benefit providing up to £70 per month to people with disabilities. However, many claimants were forced onto Universal Credit when it rolled out, resulting in the loss of this extra support. The lack of compensation for this loss caused financial strain and emotional stress for many claimants.
In response, law firm Leigh Day took up the case of 275 affected claimants, with the DWP eventually agreeing to provide compensation payments ranging from £200 to £3,000.
The DWP has also committed to implementing a broader compensation scheme to address the financial losses experienced by other claimants prior to the introduction of transitional protection.
Potential Payouts
Ryan Bradshaw, a partner in Leigh Day’s human rights team, estimates that affected claimants could be entitled to over £5,000 each. With as many as 15,000 people eligible, the total compensation payout could amount to millions of pounds.
A Call for Justice
Bradshaw emphasized that while the legal settlement benefits his clients, thousands of others have suffered similar hardships without being able to file individual claims.
“A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place,” he said. “The mistakes made here should never be repeated.”
Claimant Testimony: Philippa’s Story
One of the claimants, Philippa from Chesterfield, shared how the compensation improved her life. Philippa, 39, has dealt with various health conditions, including fibromyalgia, dehydrated spinal discs, and brain fog, which have affected her ability to work consistently.
When she was transitioned to Universal Credit in December 2018, she lost £184.21 per month from her income. After appealing her case and waiting two years for a tribunal decision, she eventually secured Personal Independence Payments (PIP) and returned to receiving both legacy benefits and Universal Credit.
Philippa highlighted the significance of the compensation, saying:
“The compensation meant the difference between being able to access prepared meals which cover my nutritional needs, versus buying the cheapest ready meals which are not nutritionally balanced.”
Ongoing Questions and Confusion
The DWP confirmed that it has started making backdated payments to eligible claimants who lost the Enhanced Disability Premium when they moved to Universal Credit. However, the department did not clarify how many people had received payments or provide an estimate of the total cost of the compensation scheme.
DWP Underpayment and Service Criticism
This case comes amid broader concerns about underpayments and poor service for benefit claimants. A recent report by the Public Accounts Committee revealed that claimants received £4 billion less than they were entitled to last year.
The report also highlighted long wait times for disability benefit-related inquiries, with claimants waiting 10 times longer than average for their calls to be answered.
The highest underpayment rates were linked to disability benefits, including PIP and Disability Living Allowance (DLA).
With thousands of people potentially eligible for significant backdated payments, claimants who experienced a loss in benefits due to the transition to Universal Credit are encouraged to monitor updates from the DWP and seek legal advice if necessary.
This case serves as a reminder of the importance of fair treatment and timely compensation for those relying on government support.
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FAQ’s
Who is eligible for backdated disability benefits?
Claimants who received Enhanced Disability Premiums but lost payments when moving to Universal Credit before February 2022 may be eligible for compensation.
How much compensation could claimants receive?
Eligible claimants could receive over £5,000 in backdated benefits, depending on their individual circumstances and the length of time they were underpaid.
Why were claimants affected by the transition to Universal Credit?
Before February 2022, claimants transitioning to Universal Credit did not receive compensation for the loss of Enhanced Disability Premium payments, causing a drop in income.
What is transitional protection?
Transitional protection, introduced in February 2022, compensates claimants moving from legacy benefits to Universal Credit, ensuring they do not lose out on certain payments.
Has the DWP started making compensation payments?
Yes, the DWP has started paying backdated compensation to eligible claimants, but confusion remains regarding the number of recipients and the total amount of compensation.