Latest news with #claimants
Yahoo
3 hours ago
- Business
- Yahoo
Am I eligible for PIP back payments worth more than £5,000?
More than £260m in arrears has been paid to PIP claimants who wrongfully missed out on their disability benefits, the government says. A charity has said it is "truly shocking" that the government has had to give payouts to thousands of disabled people after it made errors calculating their personal independence payments (PIP). Thousands more disabled people could be in line for payments after it emerged that their benefits were underpaid by the Department for Work and Pensions (DWP). Just weeks after the government was forced into an embarrassing U-turn over its watered-down welfare reform bill, it said that more than £260m was paid back to PIP claimants after their benefits were underpaid. PIP is a benefit given to people who have extra care or mobility costs because of a disability. ADVERTISEMENT But the Department for Work and Pensions (DWP) said it has paid out arrears to thousands of claimants, potentially totalling more than £5,000 each. Yahoo News UK examines how many disabled people were underpaid benefits and who might still be owed money. Who is eligible for PIP repayments? In its annual report published on 10 July, the DWP revealed that thousands of PIP claimants were wrongly denied or underpaid what they were entitled to, but there could be thousands more. Most of those affected lost out because of a mistake over the definition of "social support" when assessing claimants' capacity to engage with other people face to face, one of the ten categories that make up PIP's controversial points system for the daily living component of the benefit. A decision by a tribunal in 2016 ruled that the DWP had defined this too narrowly, meaning claimants wrongly missed out on payments because they did not have enough points to qualify. ADVERTISEMENT After the Supreme Court upheld that decision, the DWP has been reviewing and paying out arrears to those denied payments between 2016 and 2020. These cases have seen £250m paid to the end of March after the government reviewed the records of 308,665 cases, its report says. However, there remain 324,673 records to be examined, which indicates the DWP may have to pay out at least another £250m. The annual report does not detail how many of the 308,665 cases reviewed resulted in payouts, but it has previously revealed that up to the end of August 2023 that about 14,000 payments had been made to qualifying claimants in this category, totally about £74m, meaning an average payout of £5,285 per claimant. What were the other DWP errors? There were three kinds of errors affecting PIP claimants that were detailed in the DWP document, as first reported by The i Paper. ADVERTISEMENT As well as the "social support" definition aspect, a number of claimants who did not have a national insurance number did not have their application processed properly, even though a PIP claim can still be made without one. For those who lost out because they did not have a national insurance number, the DWP have reviewed 455 cases and paid out a total of £500,000 up to the end of March this year. The Department for Work And Pensions has paid out millions in arrears to affected PIP claimants. (Getty Images) The third error affected disabled people in Scotland, who missed out on their entitlements when they moved over to the adult disability payment (ADP), the Scottish replacement for PIP, which was rolled out in 2022. The errors processing Scottish claimants led to a total of £13m in arrears paid out to the end of March after reviewing the records of 4,691 people affected. In total, across all three errors, the DWP has paid out £263.5m in arrears. ADVERTISEMENT While the DWP is said to be handling the backlog of cases and issuing corrections, anyone who falls into the error categories mentioned here and below and has not had any communications from the DWP can contact their case manager for more information. What have campaigners said? At the beginning of July, under pressure from disability campaigners and its own Labour MPs, the government dropped planned changes to PIP assessments until disabilities minister Sir Stephen Timms conducts a review into the impact of cuts, to be concluded by autumn 2026. Evan John, policy adviser at the national disability charity Sense, told Yahoo News UK: 'It is truly shocking that the flawed PIP assessment process has left hundreds of thousands of disabled people without the support they are entitled to and that, years later, huge numbers are still waiting for compensation. 'These errors will have left many disabled people struggling to make ends meet and it is vital that the DWP now corrects this long-drawn-out situation as swiftly as possible. 'This disgraceful episode also highlights why the PIP assessment process must be made fairer. The ongoing Timms Review needs to listen to the voices of disabled people and deliver a system that makes it easier to claim support – not harder.' Mikey Erhardt, policy lead at Disability Rights UK, told Yahoo News UK: "The DWP has not only a legal obligation to pay the hundreds of millions of pounds of benefit arrears to disabled claimants but to do so expeditiously and learn and rectify the mistakes that caused them. "It continues to fail to do so, with its PIP review, which highlighted these issues relating to social support, having begun in 2020 and still ongoing to this day. "The amount we receive from disability benefits is already too low, and it must be paid at the correct rate." What has the government said? The government defended its actions in its report. It said: "Underpayments are treated seriously, and we will always look to ensure that individuals receive the correct level of payment." Yahoo News UK has approached the DWP for comment.
The Sun
8 hours ago
- Business
- The Sun
Date when thousands of Universal Credit households will get £1,000s back after DWP claim error
THE Department for Work and Pensions (DWP) has confirmed when thousands will get £1,000s back after a major error. The payments are being issued to people who received certain disability benefits such as Employment and Support Allowance (ESA) and were moved to Universal Credit. 1 It was found some claimants unfairly lost out on Severe Disability Premiums (SDP) and Enhanced Disability Premiums (EDP) during the transition, resulting in a drop of income. Both premiums offered additional financial support on top of the standard allowance for certain means-tested benefits. Tens of thousands who transferred to Universal Credit and missed out on this protection have now been found to be owed arrears. Around 57,000 people are reportedly thought to be affected by the issue, with the vast majority having now received redress. But, the DWP has confirmed around 13,000 cases are yet to be processed and cleared. In its annual report published earlier this month, it said: "Unfortunately, some underpayments may be owed to customers who no longer have an active ESA claim and restrictions in data make it difficult to identify, assess and correct these errors." The department said it was working its way through all the remaining 13,000 cases which should be completed by September. The report added: "We are working to both correct existing errors and to prevent new errors in the new premiums cases." The total arrears being paid to the roughly 57,000 claimants who missed out on SDP and EDP is worth £452million. Solicitors Leigh Day, who brought a legal challenge for claimants on disability benefits who didn't receive income protection while moving over to Universal Credit, secured a settle for 275 claimants who list their SDP earlier this year. Stop handing out new cars for FOOD INTOLERANCE says Kemi Badenoch as she demands Labour cut ballooning benefits bill These claimants were awarded between £200 and £3,000 for the loss of income they incurred. We have asked the DWP how the remaining 13,000 people affected by the issue will receive any compensation and will update this story when we have heard back. We have also asked how much the approximately 44,000 who have already received compensation got on average. Will I need to move to Universal Credit? The DWP is currently moving everyone from old-style "legacy" benefits onto Universal Credit, through a process known as managed migration. Universal Credit was set up to replace these benefits and the scheme kicked off in November 2022 after a successful pilot in July 2019. As part of the process, households on legacy benefits are sent "migration notices" in the post which tell them how to make the move to Universal Credit as it's not automatic. Households must apply for Universal Credit within three months of receiving their managed migration letter. Failing to do this can result in benefits being stopped. Tax credits, income-based jobseeker's allowance, income support and housing benefit (for those under the state pension age) were permanently discontinued in April. The remaining households, currently claiming income-related employment and support allowance (ESA), will be asked to move to Universal Credit by December 2025. Can I get help claiming Universal Credit? As well as benefit calculators, anyone moving from legacy benefit to Universal Credit can find help in a number of ways. You can visit your local Jobcentre by searching at There's also a free service called Help to Claim from Citizen's Advice: England: 0800 144 8 444 Scotland: 0800 023 2581 Wales: 08000 241 220 You can also get help online from advisers by visiting, Will I be better off on Universal Credit? ANALYSIS by James Flanders, The Sun's Chief Consumer Reporter: Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government. A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit. Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don't lose out on cash immediately. The majority of those - around 400,000 - are claiming employment support allowance (ESA). Those who move voluntarily and are worse off won't get these top-up payments and could lose cash. Those who miss the managed migration deadline and later make a claim may not get transitional protection. The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message. There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded. Examples of those who may be entitled to less on Universal Credit include: Households getting ESA and the severe disability premium and enhanced disability premium Households with the lower disabled child addition on legacy benefits Self-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended Either way, if these households don't switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.
The Sun
10 hours ago
- Business
- The Sun
Three Universal Credit and benefit changes coming next month – are your payments affected?
THREE major changes to Universal Credit and benefits are coming next month. It's crucial to understand how they might impact you and your household. 1 Hundreds of thousands of households on benefits will need to take action and switch to Universal Credit. Meanwhile, benefit claimants can expect early payments next month due to the August bank holiday. Plus, parents will need to make a note of a key child benefit deadline. Here are all the big benefit changes coming in August. Move to Universal Credit Hundreds of thousands of households currently receiving a benefit, which is soon to be axed, are being urged to keep an eye out for important letters. The managed migration process officially began back in July 2022 after a successful pilot in July 2019. Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit. Upon receiving a migration letter, claimants are given up to three months to make the switch. Failure to act within this timeframe could result in the loss of existing benefits. The Department for Work and Pensions (DWP) has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit. Households still receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit. ESA provides financial support for those unable to work due to illness or disability. Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028. However, this deadline has since been brought forward to March 2026. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence Benefits paid early Thousands can expect to see their benefit payments land earlier than usual next month. This is because when the day payments are due falls on a bank holiday or the weekend, payments are made on the first working day before. It means those expecting benefit payments on the August bank holiday, August 25, will actually see payments land in their accounts on August 22. Anyone expecting them on August 23 or 24 will also receive their money on August 22. The Department for Work and Pensions (DWP) and HMRC have confirmed the following benefits will be made early in August: Attendance allowance Carer's allowance Disability living allowance Income support Jobseeker's allowance Pension credit Personal independence payment (PIP) State pension Universal Credit Child benefit (paid by HMRC) If you are expecting your benefit payment on August 22 and don't receive it, contact DWP. You can also submit a complaint to the government department to get a problem sorted if your payment is wrong. Child benefit deadline Parents have just weeks to take action or they could risk losing their child benefit payments. The taxman is posting thousands of letters to parents of teenagers asking them to give an update about their future education plans. Child benefit is currently worth £26.05 a week for the eldest child or only child. For each subsequent child, parents get £17.25 a week. However, payments automatically stop on August 31 on or after the child has turned 16 unless parents renew their claim when their child is continuing in education. The parents of children who are furthering their education have until August 31 to tell HMRC or their payments will automatically stop. Parents can continue to receive the cash boost up until their child is 19, and enrolled in an apprenticeship program or the following education schemes: A levels or Scottish Highers International Baccalaureate home education - if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority T levels NVQs, up to level 3. Child benefit will also continue for children studying on one of these unpaid approved training courses: In Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme In Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work In Scotland: Employability Fund programme and No One Left Behind How to claim Child Benefit CHILD benefit is worth up to £1,358.32 a year for your first or only child and up to £899.47 a year for additional children. This works out at £104.20 every four weeks or £26.05 a week for your first child and £69 every 4 weeks or £17.25 a week for their siblings. There is no limit on the number of children that can be claimed for. Applying is straightforward and can be done in minutes via or through the HMRC app. Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days. You can also backdate claims for up to three months. Parents can also make a claim and then choose to opt out of receiving child benefit payments can still receive National Insurance credits if one parent is not working. National Insurance credits build up your entitlement to the state pension.
The Independent
a day ago
- Business
- The Independent
DWP reveals deadline for thousands of benefit claimants owed compensation after court battle
The Department for Work and Pensions (DWP) has provided a new update for tens of thousands of benefit claimants still due a compensation payment this year. The payments are being made to people with disabilities who were moved from 'legacy benefits' such as Employment and Support Allowance (ESA) to universal credit in the years before transitional protections were introduced. These claimants were found to have lost the 'Severe Disability Premium' (SDP) in the move, with the DWP not doing enough to ensure their incomes were protected. Most of the 57,000 people affected by the issue have now received their compensation. However, the department has said it is working to clear approximately 13,000 cases which are more complex. Explaining the issue in its annual report, the DWP stated: 'Unfortunately, some underpayments may be owed to customers who no longer have an active ESA claim and restrictions in data make it difficult to identify, assess and correct these errors.' The department said it was working to complete the work on these errors by September. While agents are proactively contacting those eligible for compensation, anyone who thinks they may have been affected to make a claim. The department said it will assess claims on a case-by-case basis based on the evidence given. The repayment scheme follows two rulings by the High Court between 2018 and 2019, which found the government failed to ensure the benefit payments of affected 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 the 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. The DWP has confirmed that the total cost of the repayment exercise is £452m. A DWP spokesperson said: 'We are fully committed to identifying claimants that are owed arrears and providing the financial support to which they are entitled as quickly as possible, with the majority of these cases having already been resolved. "We are clear that errors like this one should not happen and have already taken action to avoid future errors.' Eligibility To be eligible for compensation, a claimant must be receiving (or had previously received) Universal Credit that includes a transitional SDP, 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 which included the Disabled Child Element (non-severely disabled category) Payment rates 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 into 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:
The Independent
4 days ago
- Business
- The Independent
DWP reveals deadline for thousands of benefit claimants still owed compensation after court battle
The Department for Work and Pensions (DWP) has provided a new update for tens of thousands of benefit claimants still due a compensation payment this year. The payments are being made to people with disabilities who were moved from 'legacy benefits' such as Employment and Support Allowance (ESA) to universal credit in the years before transitional protections were introduced. These claimants were found to have lost the 'Severe Disability Premium' (SDP) in the move, with the DWP not doing enough to ensure their incomes were protected. Most of the 57,000 people affected by the issue have now received their compensation. However, the department has said it is working to clear approximately 13,000 cases which are more complex. Explaining the issue in its annual report, the DWP stated: 'Unfortunately, some underpayments may be owed to customers who no longer have an active ESA claim and restrictions in data make it difficult to identify, assess and correct these errors.' The department said it was working to complete the work on these errors by September. While agents are proactively contacting those eligible for compensation, anyone who thinks they may have been affected to make a claim. The department said it will assess claims on a case-by-case basis based on the evidence given. The repayment scheme follows two rulings by the High Court between 2018 and 2019, which found the government failed to ensure the benefit payments of affected 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 the 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. The DWP has confirmed that the total cost of the repayment exercise is £452m. A DWP spokesperson said: 'We are fully committed to identifying claimants that are owed arrears and providing the financial support to which they are entitled as quickly as possible, with the majority of these cases having already been resolved. "We are clear that errors like this one should not happen and have already taken action to avoid future errors.' Eligibility To be eligible for compensation, a claimant must be receiving (or had previously received) Universal Credit that includes a transitional SDP, 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 which included the Disabled Child Element (non-severely disabled category) Payment rates 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 into 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:
