The Department for Work and Pensions (DWP) has finally spoken up about a new compensation scheme that could see thousands receive payouts. DWP has rolled out a compensation initiative for individuals who were financially disadvantaged during their transition to Universal Credit.
So far, over 200 benefit recipients have been compensated with amounts ranging from £200 to £3,000 due to income losses after being switched to Universal Credit. These claimants lost “Severe Disability Premiums” (SDP) when they moved onto the programme before the DWP established the SDP Gateway scheme, which now prevents such losses.
Some also missed out on the “Enhanced Disability Premium” (EDP). Partner at Leigh Day’s human rights team, Ryan Bradshaw, represented 275 claimants who suffered similar income reductions after their migration.
He suggests that upwards of 15,000 benefit claimants might be eligible for some form of financial redress. A claimant who spoke with Leigh Day shared: “When you’re on benefits, you don’t feel secure.
“Every day you wait for the little brown envelope. The compensation has 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 enough.”
“I know people on relatively good incomes who are still struggling with the cost of living,” said Mr Bradshaw, adding proudly:”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.”
“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. 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 warned that the mistakes made here should never be repeated, reports Birmingham Live.
On the flip side, a DWP spokesperson has confirmed: “Following this ruling the department has begun the process of compensating affected claimants.”