Apply for the DWP’s £5,000 Compensation: If you are currently claiming Universal Credit and were moved from legacy benefits before January 2019, you might be eligible for a £5,000 compensation payout from the Department for Work and Pensions (DWP). This payment is part of a redress scheme following legal challenges that found some claimants were unfairly impacted during the transition to Universal Credit.
Thousands of individuals lost access to premiums such as the Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP) when they were moved over to Universal Credit. Now, thanks to ongoing efforts by disability rights campaigners and legal actions, affected claimants may be compensated for the loss of income.
Apply for the DWP’s £5,000 Compensation
| Feature | Details |
|---|---|
| Compensation Amount | Up to £5,000 depending on eligibility and circumstances |
| Target Group | Universal Credit claimants who lost Severe Disability Premium (SDP) or Enhanced Disability Premium (EDP) |
| Eligibility Cut-off Date | Transition to Universal Credit occurred before January 2019 |
| Application Method | DWP will contact eligible individuals directly |
| Helpline for Inquiries | Universal Credit helpline – 0800 328 5644 |
| Key Resources | GOV.UK Universal Credit, Citizens Advice |
If you lost access to the Severe Disability Premium or Enhanced Disability Premium when moving to Universal Credit before January 2019, you could be due up to £5,000 in compensation from the DWP. While there’s no formal application, you should take action if you believe you’re eligible and haven’t been contacted.
Contact the Universal Credit helpline, gather your records, and seek advice from organisations like Citizens Advice to ensure you don’t miss out on this opportunity.
Why Is the DWP Offering Compensation?
When Universal Credit was first introduced, many people were moved from legacy benefits—like Income Support, income-based Jobseeker’s Allowance (JSA), and Employment and Support Allowance (ESA)—to the new system. However, this shift didn’t properly account for key disability premiums that many relied on, leading to significant financial losses.
Legal challenges, including cases backed by advocacy organisations like Disability Rights UK, found that the transition failed to protect claimants’ incomes adequately. Courts ruled that this policy was discriminatory against disabled people. The DWP was required to reconsider its approach, which has led to this compensation scheme.
Who Qualifies for the £5,000 Compensation?
The compensation is not for everyone on Universal Credit. It specifically applies to those who:
- Were receiving legacy benefits before January 2019.
- Were entitled to the Severe Disability Premium (SDP), Enhanced Disability Premium (EDP), or Disabled Child Premium.
- Moved to Universal Credit voluntarily or due to a change in circumstances before the government introduced protections for premium recipients.
- Lost these disability premiums and experienced a financial shortfall as a result.
Those who were part of the “managed migration” process or who moved to Universal Credit after January 2019 may not be eligible.
Example Scenario:
Jane was receiving Income-Related ESA and also received the Severe Disability Premium. In 2018, she moved in with her partner, which prompted a switch to Universal Credit. After the switch, she no longer received the SDP, resulting in a monthly shortfall. Jane may now be eligible for backpay and compensation.
How Much Will You Receive?
The compensation amount depends on how much money you lost and for how long. Some eligible claimants may receive up to £5,000, while others may get a smaller amount based on their specific case.
This isn’t a flat-rate payment. The DWP will calculate the loss and award compensation accordingly. Payments are expected to cover backdated financial losses as well as a potential hardship supplement.
Apply for the DWP’s Compensation
You do not need to fill out a standard application form. Instead, the DWP will identify those who are eligible and contact them directly.
However, if you believe you qualify and have not been contacted by the DWP, you can take proactive steps:
Steps to Take:
- Contact the Universal Credit Helpline:
- Call 0800 328 5644 (Monday to Friday, 8am to 6pm).
- Be ready to provide your National Insurance number and basic personal information.
- Provide Documentation:
- If available, gather your old benefit award letters that show receipt of SDP or EDP.
- Be ready to explain your situation and why you think you’re eligible.
- Use Support Services:
- Contact Citizens Advice or your local welfare rights service for help preparing your case.
- The Help to Claim service by Citizens Advice is free and confidential: Help to Claim.
When Will Payments Be Made?
The DWP has said payments will be processed in phases throughout 2024 and into 2025, with the aim to complete most by August 2025. If you qualify, you may receive:
- A letter confirming your eligibility.
- A breakdown of the compensation amount.
- Details on when to expect payment.
All compensation payments will be made directly into your bank account, using the details linked to your Universal Credit claim.
Other Support You May Be Eligible For
If you’re on Universal Credit and facing hardship, there may be other forms of financial help you can access:
1. Budgeting Advances
For help with unexpected expenses such as furniture or travel.
2. Discretionary Housing Payments
If your housing element does not cover your full rent.
3. Council Tax Support
Local councils can reduce your Council Tax bill if you’re on a low income.
4. Food Banks and Charitable Aid
You can get referrals through Citizens Advice, your GP, or your local council.
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What to Do If You Disagree with a DWP Decision
If you’re told that you’re not eligible for compensation but believe this is incorrect, you can:
- Request a Mandatory Reconsideration: Ask the DWP to review your case.
- Lodge a formal complaint: Use the DWP’s complaints procedure.
- Appeal to an independent tribunal: If the decision is upheld and you still disagree.
You may wish to consult with welfare rights advisers or solicitors who specialize in benefits law.
FAQs On Apply for the DWP’s £5,000 Compensation
Q1: Can I still claim if I moved to Universal Credit after January 2019?
In most cases, no. The compensation is for those who transitioned before protections were put in place in January 2019.
Q2: Will this compensation affect my other benefits?
No. The compensation is a one-off payment and will not affect your existing Universal Credit or other benefit entitlements.
Q3: How will I receive the money?
Payments will be made by bank transfer, using the account details associated with your Universal Credit claim.
Q4: What if I don’t have records of my old benefits?
The DWP will check your historical benefit data. However, having old award letters or statements may help speed up the process.
Q5: Is there a deadline to receive this compensation?
The DWP has not set a specific deadline but plans to complete most payments by August 2025.
