Tens of thousands of disabled benefit claimants will receive long-awaited compensation after a landmark legal battle forced the Department for Work and Pensions (DWP) to act. The government department has now provided a crucial update on the payment timeline, confirming that some claimants will receive their money by August 2025—but others may have to wait even longer.
The saga began when disabled claimants who had been receiving ‘severe disability premiums’ (SDP) were moved from legacy benefits to Universal Credit. Instead of maintaining their previous income levels, many found themselves significantly worse off – losing an average of £180 per month. In response, legal challenges were mounted, culminating in two major High Court rulings in 2018 and 2019. The courts found that the government had failed to protect these vulnerable individuals during the transition.
Despite a failed appeal in 2020, the DWP delayed compensating those affected. It took yet another legal challenge, brought by law firm Leigh Day on behalf of 275 claimants, to finally force the government’s hand. Earlier this month, the DWP announced its compensation scheme—but many claimants remain frustrated by further delays.
DWP official Neil Couling, senior responsible owner for Universal Credit, outlined the payment structure, dividing claimants into three groups:
* First group (35,000 claimants): Those who were due additional SDP transitional payments from 2020 onwards and continue to receive Universal Credit. These payments are the easiest to process and should be completed by August 2025, with 4,110 people already paid.
* Second group (15,000 claimants): Those owed back payments for the period between 2018 and 2020, who also continue receiving Universal Credit. Their payments, considered slightly more complex, will begin by the end of March and should also be completed by August 2025.
* Third group (7,000 claimants): Those who lost SDP but no longer receive Universal Credit. Due to the difficulty in tracing and calculating their payments, no deadline has been provided, with the DWP stating that “analysis is ongoing.”
Legal experts and campaigners call for urgent action
Lawyer Ryan Bradshaw of Leigh Day, who has represented claimants throughout the legal battles, expressed disappointment over the slow progress. He told the Independent : “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 rollout of Universal Credit has been a disaster for many disabled people, who find themselves worse off when transitional protections inevitably end.”
Campaigners argue that the simplest solution would be for the DWP to ensure that no one is worse off under Universal Credit in either the short or long term. “Instead of splitting hairs, spinning statistics, and delaying progress, the DWP should ensure disability premiums are maintained in full for those who qualify,” Bradshaw added.