Thousands of DWP benefit claimants could get compensation after court battle

As many as 13,000 benefit claimants could be entitled to thousands of pounds in compensation as the Department for Work and Pensions (DWP) settles a major court claim.

Over 200 claimants were awarded between £200 and £3,000 in damages for losing out on income after being moved on to universal credit.

These were people receiving certain disability benefits who were moved from ‘legacy benefits’ to universal credit before September 2019. The claimants lost ‘severe disability premiums’ (SDP) in the move, with the DWP not initially introducing a scheme to ensure income protection.

Others missed out on the ‘Enhanced Disability Premium’ (EDP) in the move on to universal credit, with the total loss of income worth up to £180 a month.

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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. It is the same firm that has now settled similar cases for 275 claimants with the DWP.

The department has now set up a lawful compensation scheme to repay these claimants, with payments estimated to be in excess of £5,000. It is the non-financial element of the claim that has been settled, with compensation being for the stress and injury to feelings claimants had suffered.

However, Ryan Bradshaw, who represented all the claimants in both cases, says that as many as 13,000 benefit claimants could be entitled to financial compensation.

Mr Bradshaw 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.

“They too will have suffered unnecessary stress. A suitable scheme, compensating all the people who have endured discrimination at the hands of the DWP, ought to be urgently put in place. The mistakes made here should never be repeated.”

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One of his clients, Philippa, 39, from Chesterfield, suffers from chronic autoimmune condition fibromyalgia which causes pain throughout her body, dehydrated discs in her spine, and brain fog.

She says the loss of DWP payments worsened her health issues and left her struggling to afford the essentials. It was only two years after appealing her benefits that she would reach a tribunal and have some transitional protection reinstated.

Speaking about the ruling, Philippa said: “When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope.

“The compensation has meant the difference between being able to access prepared meals which cover my nutritional needs, versus buying the cheapest ready meals which are not nutritionally balanced enough.

A DWP Spokesperson said: “Following this ruling the department has begun the process of compensating affected claimants.”