Thousands on Universal Credit could be in line for compensation “in excess of £5,000” after a legal challenge spearheaded by Leigh Day solicitors on behalf of 275 claimants who were stripped of their Severe Disability Premium (SDP) upon transitioning to the benefit. Leigh Day’s website update indicates that as many as 13,000 individuals might be eligible for a payout from the Department for Work and Pensions (DWP).
The firm’s website reveals that over 200 claimants have already received settlements ranging from £200 to £3,000 from the DWP for the loss of income incurred after switching to Universal Credit before January 2019. The claimants had lost their SDP during the shift to Universal Credit prior to the DWP implementing the ‘SDP Gateway scheme’, which was designed to prevent such losses—similar to the Transitional Protection payments now offered to those moving from legacy benefits to Universal Credit.
Additionally, the website notes that some people also missed out on the ‘Enhanced Disability Premium’ (EDP), resulting in an income reduction of up to £180 per month, reports the Daily Record.
This significant loss of income was contested at the High Court by two benefit recipients, identified as TP and AR, with Leigh Day representing them. Their successful legal action led to the establishment of the SDP Gateway.
Following the High Court’s decision favouring TP and AR, Leigh Day’s human rights team partner Ryan Bradshaw has taken on the cause of 275 other claimants who endured comparable financial hardships after transitioning to Universal Credit. He swiftly resolved the non-monetary aspects of their case, leading to the Department for Work and Pensions (DWP) allocating compensation for the “stress and injury to feelings they had suffered” The firm’s website discloses: “The DWP have agreed to an August 2025 deadline to set up a lawful compensation scheme to repay his clients for the loss of income, which Ryan Bradshaw estimates could be worth in excess of £5,000 per person.”
Mr Bradshaw suspects that an additional 15,000 benefit recipients might be entitled to financial remuneration from the DWP. He reflected: “I am glad to have settled this claim on behalf of my clients. However, there are thousands of others who have been similarly affected who have not been in a position to bring a claim like this.”
He continued with concern: “They too will have experienced the loss of £180 a month after they were moved from legacy benefits on to universal credit in the years before January 2019. They too will have suffered unnecessary stress.”
Bradshaw urged that reparations should be expedited: “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.”
Individuals who believe they may have been impacted by the transition to Universal Credit should seek independent assistance and guidance from a non-profit organisation like Citizens Advice. The complete story can be found on the Leigh Day website here.