Lawyers who effectively advocated for the Department for Work and Pensions (DWP) to introduce a compensation program for a large number of benefit claimants are now seeking clarity on payment-related issues. The DWP initiated the scheme earlier this year for disabled individuals who switched from “legacy benefits” like Employment and Support Allowance (ESA) to Universal Credit without transitional protections in place.
These claimants lost their ‘Severe Disability Premium’ (SDP) during the transition, as the DWP did not adequately safeguard their incomes. Leigh Day lawyers, who handled the cases, are now pressing the DWP to reveal how they calculate the payments, pointing out instances where the payments may not be accurate.
Ryan Bradshaw, a lawyer at Leigh Day involved in the cases, highlighted concerning cases where the DWP informed claimants that the compensation payments might affect their bank balances and benefit entitlements. The estimated compensation per person could exceed £5,000, with the total cost of the repayment exercise reported to be £452 million by The Independent.
While most of the 57,000 affected individuals have received compensation, the DWP confirmed it is addressing around 13,000 more intricate cases by September. Claimants eligible for compensation are encouraged to come forward, and the DWP will assess claims on an individual basis.
Ryan Bradshaw emphasized the need for a clear and transparent calculation method for benefits claimants who missed out on potential payments. The DWP spokesperson reiterated their commitment to identifying and compensating eligible claimants swiftly, particularly those who shifted to Universal Credit due to changes in circumstances.
To qualify for compensation, claimants must have been receiving or previously received Universal Credit including a transitional SDP. Before transitioning to Universal Credit, claimants must have met specific conditions.
The back payments will be determined based on what claimants would have been entitled to under the new rules if they had been in place during the transition period. Monthly payment rates will be calculated accordingly.
