**DWP Announces Thousands Could be Owed Over £5,000 Due to Disability Benefit Error**
The Department for Work and Pensions (DWP) has issued a significant update affecting thousands of disability benefit claimants, some of whom could be entitled to compensation sums exceeding £5,000 each, following mistakes made during the transition to Universal Credit.
The error centres on recipients who were previously claiming certain disability-related benefits, including Employment and Support Allowance (ESA), but who lost access to important disability premiums when shifted onto Universal Credit before January 2019. In particular, many of those affected were no longer eligible for the Severe Disability Premium (SDP) or the Enhanced Disability Premium (EDP), with some individuals seeing their monthly payments shrink by as much as £180.
This reduction in benefit prompted a legal challenge led by law firm Leigh Day, which argued on behalf of claimants in court that DWP’s actions led to unjust financial losses. In response, the DWP agreed to compensate those who missed out. According to Leigh Day, individual entitlement could surpass £5,000 in certain cases, although compensation will vary according to individual circumstances.
Despite beginning the repayment process, the DWP’s latest annual report has revealed that around 13,000 cases have yet to be finalised, leaving a significant number of people still waiting for resolution. The department has acknowledged that identifying and correcting underpayments is complex, particularly for former ESA claimants whose cases may now be inactive and harder to trace due to data limitations.
In its report, the DWP confirmed that it hopes to resolve the majority of outstanding cases by September. Overall, the depth of the issue is considerable—with estimates suggesting up to 57,000 people have been affected. The total cost of rectifying the underpayment and compensating claimants is expected to reach a staggering £452 million.
Leigh Day recently secured compensation for 275 individuals through a High Court settlement, with payouts ranging from £200 up to £3,000 per person. However, they maintain that thousands more remain who likely have not brought forward formal claims—many of whom would have experienced hardship after losing vital benefit top-ups ahead of the January 2019 policy changeover.
A DWP spokesperson commented on the department’s ongoing efforts: “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 already resolved. We are clear that errors like this should not happen and have already put measures in place to prevent this in the future.”
Ryan Bradshaw, solicitor at Leigh Day, welcomed settlements for his clients but highlighted the stress faced by thousands of others impacted by the oversight. “They too will have experienced the loss of £180 a month after they were moved from legacy benefits onto Universal Credit. They too will have suffered unnecessary stress,” he added.
This reimbursement initiative comes against the backdrop of the DWP’s wider migration of people from so-called legacy benefits onto Universal Credit. Benefits affected by the transition include Housing Benefit, Income-related ESA, Income-based Jobseeker’s Allowance, Child Tax Credit, Working Tax Credit, and Income Support.
Claimants who believe they may have been affected by these historic changes are encouraged to check their eligibility or contact DWP for further information. As the September deadline looms, thousands are still awaiting clarity on whether their cases will be resolved and compensation paid accordingly. The ongoing situation highlights the importance of consistent benefit oversight and the need for robust systems to protect vulnerable claimants across the welfare system.