Latest news with #EnhancedDisabilityPremium
Yahoo
14-03-2025
- Business
- Yahoo
DWP delivers fresh compensation details for 57,000 benefit claimants – from eligibility to payments
The Department for Work and Pensions (DWP) has provided a new update for the tens of thousands of benefit claimants due a compensation payment this year. Around 57,000 people will receive payments, thought to be as large as £5,000, with the department hoping to complete the scheme by August 2025. The payments will be made to many who were receiving certain disability benefits and moved from 'legacy benefits' to universal credit in the years before appropriate transitional protections were introduced. These claimants were found to have lost 'severe disability premiums' (SDP) in the move, with the DWP not doing enough to ensure their incomes were protected. The scheme follows two rulings by the High Court between 2018 and 2019, which found the government failed to ensure the benefit payments of these claimants weren't reduced when they transitioned. In 2020, the DWP made a failed attempt to challenge these rulings at the Court of Appeal. It was found that monthly loss of income in both cases amounted to around £180. Law firm Leigh Day – who brought the cases – estimates that compensation could be worth more than £5,000 per person. In February, DWP's senior responsible owner for universal credit, Neil Couling, confirmed that most eligible claimants would receive compensation before the end of the year. The department has now released even more detail about the scheme, including precise eligibility and payment rates. To be eligible for compensation, a claimant must be receiving (or had previously received) Universal Credit that includes an SDP element or transitional amount, or would have done had it not been eroded. They must then have met one of three more conditions immediately before their move to Universal Credit: They were entitled to an income-based legacy benefit that included an Enhanced Disability Premium They were entitled to an income-based legacy benefit that included the Disability Premium They were entitled to an income-based legacy benefit that included the Disabled Child Premium, or Child Tax Credit that included the Disabled Child Element (non-severely disabled category) There are five possible payment rates, which will be made for each month between the claimant's transition to Universal Credit and when new income protection regulations came in force in February 2024. These back payments will be calculated by giving claimants what they would have been entitled to had the new rules been in place when they transitioned. The monthly rates are: Enhanced Disability Premium, single person – £84 Enhanced Disability Premium, couple claim – £120 Disability Premium, single person – £172 Disability Premium, couple claim – £246 Disabled child – £177 per eligible child When eligible claimants will receive a payment depends on when they moved to Universal Credit, and whether they still do today. Mr Couling outlined three groups of people who can expect a payment at differing times: People due an additional amount of transitional SDP element for 2020 onwards, and who continue to receive universal credit People due an additional amount for the period between 2018 and 2020, and who continue to receive universal credit People due an additional amount relating from 2018 onwards who are no longer receiving universal credit The first group, he says, comprises around 35,000 people who can expect their payments by August 2025, with over 4,000 already paid. This is because they are the 'easiest' to handle, as payments can be made automatically using the digital system. There are 15,000 in the second group, who can expect their payments to begin by the end of March. The later payments are due to them converting from a manual SDP payment to being paid via the universal credit system, making their cases 'slightly more complex.' They should also all be paid by August 2025. However, no deadline is given for the third group of around 7,000 customers. These are people who received an SDP payment either manually or on-system, but have since seen their universal credit claim close. Due to the 'more complex' nature of their cases, 'analysis is ongoing to determine the level of work required to enable payments to be made' to them, Mr Couling says.
Yahoo
09-02-2025
- Business
- Yahoo
Thousands of DWP benefit claimants could get compensation after court battle
As many as 13,000 benefit claimants could be entitled to thousands of pounds in compensation as the Department for Work and Pensions (DWP) settles a major court claim. Over 200 claimants were awarded between £200 and £3,000 in damages for losing out on income after being moved on to universal credit. These were people receiving certain disability benefits who were moved from 'legacy benefits' to universal credit before September 2019. The claimants lost 'severe disability premiums' (SDP) in the move, with the DWP not initially introducing a scheme to ensure income protection. Others missed out on the 'Enhanced Disability Premium' (EDP) in the move on to universal credit, with the total loss of income worth up to £180 a month. The 'SDP gateway' was only implemented after a successful High Court battle by law firm Leigh Day on behalf of two benefit claimants who lost income in 2019. It is the same firm that has now settled similar cases for 275 claimants with the DWP. The department has now set up a lawful compensation scheme to repay these claimants, with payments estimated to be in excess of £5,000. It is the non-financial element of the claim that has been settled, with compensation being for the stress and injury to feelings claimants had suffered. However, Ryan Bradshaw, who represented all the claimants in both cases, says that as many as 13,000 benefit claimants could be entitled to financial compensation. Mr Bradshaw said: '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 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.' One of his clients, Philippa, 39, from Chesterfield, suffers from chronic autoimmune condition fibromyalgia which causes pain throughout her body, dehydrated discs in her spine, and brain fog. She says the loss of DWP payments worsened her health issues and left her struggling to afford the essentials. It was only two years after appealing her benefits that she would reach a tribunal and have some transitional protection reinstated. Speaking about the ruling, Philippa said: '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. A DWP Spokesperson said: 'Following this ruling the department has begun the process of compensating affected claimants.'
Yahoo
06-02-2025
- Business
- Yahoo
Thousands of DWP benefit claimants could get compensation after court battle
As many as 13,000 benefit claimants could be entitled to thousands of pounds in compensation as the Department for Work and Pensions (DWP) settles a major court claim. Over 200 claimants were awarded between £200 and £3,000 in damages for losing out on income after being moved on to universal credit. These were people receiving certain disability benefits who were moved from 'legacy benefits' to universal credit before September 2019. The claimants lost 'severe disability premiums' (SDP) in the move, with the DWP not initially introducing a scheme to ensure income protection. Others missed out on the 'Enhanced Disability Premium' (EDP) in the move on to universal credit, with the total loss of income worth up to £180 a month. The 'SDP gateway' was only implemented after a successful High Court battle by law firm Leigh Day on behalf of two benefit claimants who lost income in 2019. It is the same firm that has now settled similar cases for 275 claimants with the DWP. The department has now set up a lawful compensation scheme to repay these claimants, with payments estimated to be in excess of £5,000. It is the non-financial element of the claim that has been settled, with compensation being for the stress and injury to feelings claimants had suffered. However, Ryan Bradshaw, who represented all the claimants in both cases, says that as many as 13,000 benefit claimants could be entitled to financial compensation. Mr Bradshaw said: '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 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.' One of his clients, Philippa, 39, from Chesterfield, suffers from chronic autoimmune condition fibromyalgia which causes pain throughout her body, dehydrated discs in her spine, and brain fog. She says the loss of DWP payments worsened her health issues and left her struggling to afford the essentials. It was only two years after appealing her benefits that she would reach a tribunal and have some transitional protection reinstated. Speaking about the ruling, Philippa said: '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. A DWP Spokesperson said: 'Following this ruling the department has begun the process of compensating affected claimants.'
The Independent
06-02-2025
- Business
- The Independent
Thousands of DWP benefit claimants could get compensation after court battle
As many as 13,000 benefit claimants could be entitled to thousands of pounds in compensation as the Department for Work and Pensions (DWP) settles a major court claim. Over 200 claimants were awarded between £200 and £3,000 in damages for losing out on income after being moved on to universal credit. These were people receiving certain disability benefits who were moved from 'legacy benefits' to universal credit before September 2019. The claimants lost 'severe disability premiums' (SDP) in the move, with the DWP not initially introducing a scheme to ensure income protection. Others missed out on the 'Enhanced Disability Premium' (EDP) in the move on to universal credit, with the total loss of income worth up to £180 a month. The 'SDP gateway' was only implemented after a successful High Court battle by law firm Leigh Day on behalf of two benefit claimants who lost income in 2019. It is the same firm that has now settled similar cases for 275 claimants with the DWP. The department has now set up a lawful compensation scheme to repay these claimants, with payments estimated to be in excess of £5,000. It is the non-financial element of the claim that has been settled, with compensation being for the stress and injury to feelings claimants had suffered. However, Ryan Bradshaw, who represented all the claimants in both cases, says that as many as 13,000 benefit claimants could be entitled to financial compensation. Mr Bradshaw said: '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 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.' One of his clients, Philippa, 39, from Chesterfield, suffers from chronic autoimmune condition fibromyalgia which causes pain throughout her body, dehydrated discs in her spine, and brain fog. She says the loss of DWP payments worsened her health issues and left her struggling to afford the essentials. It was only two years after appealing her benefits that she would reach a tribunal and have some transitional protection reinstated. Speaking about the ruling, Philippa said: '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. A DWP Spokesperson said: 'Following this ruling the department has begun the process of compensating affected claimants.'
