Thousands could of claimants could be owed compensation following a legal battle involving the Department for Work and Pensions (DWP).
As many as 13,000 benefit claimants could be eligible for compensation after it was found that many lost income during a migration to Universal Credit. So far, more than 200 claimants have been awarded between £200 and £3,000 in damages as result.
Those affected were moved from ‘legacy benefits’ to Universal Credit prior to September 2019 while also missing out on ‘severe disability premiums’ as the DWP did not introduce a scheme that enabled financial protection. Meanwhile, some lost up to £180 a month in income due to missing out on the enhanced disability premium (EDP).
Disability premium payments are generally added to certain legacy benefits such as Income Support and Housing benefit for those living with particular disabilities. It came in three tiers as standard, severe, and enhanced with a variety of eligibility, full details of which can be found here.
Law firm Leigh Deigh previously represented two benefit claimants in High Court who claimed to lose income as a result of the move and successfully won the battle for consultation. The same firm has now settled similar cases for 275 DWP claimants.
As a result, the DWP has now implemented a compensation scheme to help compensate affected claimants, with some estimating payments to reach well into the £1,000s. While the non-financial element of the claim has been settled, compensation will now be for the stress and injury to feeling claimants suffered in direct relation to the issue mentioned.
According to Ryan Bradshaw, a partner at Leigh Day, as many as £13,000 claimants could be eligible for compensation. “I am glad to have settled this claim on behalf of my clients,” he said.
“However, there are thousands of others who have been similarly affected who have not been in a position to bring a claim like this. They too will have suffered unnecessary stress.
“A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place. The mistakes made here should never be repeated.”
A DWP spokesperson said: “Following this ruling the department has begun the process of compensating affected claimants.”
All the benefits being migrated to Universal Credit
Universal Credit is a benefit for those under State Pension age who are either receiving a low income or are out of work and supports a wide range of things including childcare and housing. Most people who were claiming what are now known as legacy benefits will be contacted by the DWP to move them onto Universal Credit, with the legacy benefits ending as a result.
The main legacy benefits being affected by this change include:
- Income-based Jobseeker’s Allowance (JSA)
- Working Tax Credit (WTC)
- Child Tax Credit (CTC)
- Housing Benefit (HB)
- Income-related Employment and Support Allowance (ESA)
- Income Support (IS)