The Department for Work and Pensions (DWP) has revealed that 57,000 individuals could be eligible for payments of up to £5,000 as part of a large-scale compensation effort. This follows a redress scheme targeting those who lost out financially when shifting from legacy benefits to Universal Credit, particularly due to the loss of severe disability premiums (SDP).
Neil Couling, the DWP’s senior official overseeing Universal Credit, detailed the payout plan during a Work and Pensions Committee session. He explained that court rulings found the DWP’s transitional support inadequate, prompting the need for broader compensation. “The courts ruled our protections fell short,” he said, “and we’re now acting on those decisions.”
Couling identified three groups eligible for payments:
- About 35,000 people still on Universal Credit who qualify for an extra transitional SDP amount from 2020 onward.
- Around 15,000 individuals, also still on Universal Credit, owed additional funds for 2018 to 2020.
- Approximately 7,000 former Universal Credit recipients due compensation from 2018 onward.
The first group is set to receive payments soonest, as Couling noted their cases are “easiest” to process automatically via the digital system. The second and third groups, with 15,000 and 7,000 people respectively, pose a trickier challenge due to a mix of clerical and digital records, requiring the DWP to devise a workable solution.
FAQ’s
Who could be owed money by the DWP?
Up to 57,000 people could be eligible for payments of up to £5,000 from the Department for Work and Pensions (DWP). These are individuals who lost severe disability premiums (SDP) when moving from legacy benefits to Universal Credit.
Why are these payments being made?
Court rulings found the DWP’s transitional support for those switching to Universal Credit was insufficient, especially for those losing SDP. The department is now implementing these judgments to compensate affected claimants.
Which groups qualify for the compensation?
Three groups are eligible: 1) 35,000 people still on Universal Credit owed extra SDP from 2020 onward; 2) 15,000 still on Universal Credit owed funds for 2018–2020; 3) 7,000 no longer on Universal Credit owed money from 2018 onward.
Who will get paid first?
The 35,000 in the first group are likely to receive payments first. Their cases are the ‘easiest’ to process, as the DWP can handle them automatically through its digital system.
Why is it taking longer for some groups?
The second group (15,000) and third group (7,000) have mixed clerical and digital records, complicating the process. The DWP is working on a solution to address these cases.
What did the DWP say about this?
Neil Couling, the DWP’s Universal Credit chief, told the Work and Pensions Committee that the courts ruled the original transitional protections ‘weren’t large enough,’ leading to this expanded compensation effort.