The Department for Work and Pensions (DWP) has confirmed that 57,000 benefit claimants could receive payouts of up to £5,000.
Earlier this month, the DWP settled a High Court challenge law firm Leigh Day had brought on behalf of more than 200 claimants who were moved from legacy benefits to universal credit.
Following the ruling where claimants were awarded damages ranging from £200 to £3,000, the Government promised to resolve the matter.
At first it was estimated 13,000 benefit claimants may be entitled to compensation but the number is now larger than first thought, around 57,000.
Neil Couling, the DWP senior accountable owner for Universal Credit, told the Independent: “The courts have decided on all of these, and we are now moving to implement the various judgments of the courts in those cases.”
The claimants were receiving disability benefits when they were moved to universal credit before September 2019.
Some claimants lost severe disability premiums or (SDP) when they were moved while some missed out on the Enhanced Disability Premium (EDP) which meant they lsost an income of £180 a month.
The Independent reported that 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.
Leihg Day has now settled similar cases for 275 claimants with the DWP.
Payments estimated to be in excess of £5,000 – these are the non-financial element of the claim – and are for compensation due to the stress and injury to feelings claimants had suffered.
Ryan Bradshaw, who represented the claimants, 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.”
People eligible will be contacted by the DWP and will include those who continue to receive Universal Credit but are owed additional transitional SDP elements from 2020 onwards.
It will also include those due an additional amount for the period between 2018 and 2020, and who continue to receive the benefit, and people due an additional amount relating from 2018 onwards who are no longer on Universal Credit.
Approximately 35,000 individuals are in the first group, and they are probably going to receive the payouts first.
A DWP Spokesperson said: “Following this ruling the department has begun the process of compensating affected claimants.”
