DWP £5,000 Financial Boost 2025: The Department for Work and Pensions (DWP) is offering compensation of up to £5,000 to thousands of benefit claimants who lost out when moved from legacy benefits to Universal Credit. Around 57,000 claimants who were affected by the removal of Severe Disability Premiums (SDP) are eligible for these payments, which will be made by the end of summer 2025.
Who Is Eligible for the Compensation?
To qualify for the Universal Credit compensation, claimants must:
- Have received Universal Credit with an SDP element or transitional amount.
- Have met at least one of the following conditions before switching to Universal Credit:
- Entitlement to an income-based legacy benefit that included an Enhanced Disability Premium.
- Entitlement to an income-based legacy benefit that included a Disability Premium.
- Entitlement to an income-based legacy benefit with the Disabled Child Premium, or Child Tax Credit with the Disabled Child Element (non-severely disabled category).
Why Is the DWP Paying Compensation?
The DWP lost several court cases where it was ruled that claimants were not given enough transitional protection when moved to Universal Credit. The courts ruled that compensation must cover all missing elements, leading to the new compensation scheme.
Neil Couling, the DWP’s senior responsible officer for Universal Credit, confirmed that all rulings will now be fully implemented.
Ryan Bradshaw, a Leigh Day partner who represented claimants, criticised the delay, stating:
“Six years after we won our first case regarding the removal of Disability Premiums under Universal Credit, the DWP is still making severely disabled people wait for proper compensation.”
Bradshaw further stated that the removal of Disability Premiums has made some of his clients £2,000 per year worse off, even before factoring in inflation.
When Will the Payments Be Made?
- The DWP has confirmed that the compensation payments will be made by the end of summer 2025.
- The exact amount each claimant receives will depend on their individual circumstances.
- Some claimants could receive up to £5,000.
The Universal Credit transition has left many disabled claimants financially worse off. After legal battles, the DWP is now compensating eligible claimants for missing payments. If you believe you qualify for this compensation, check your Universal Credit records or contact the DWP to ensure you receive what you are owed. Payments are expected to be completed by the end of summer 2024.
FAQ’s
Who is eligible for the DWP £5,000 compensation?
You must have received Universal Credit with an SDP element or transitional amount and previously claimed a legacy benefit with a disability premium.
Why is the DWP offering Universal Credit compensation?
The DWP lost court cases where it was ruled that claimants did not receive enough financial protection when moved to Universal Credit.
How much compensation will I receive?
The amount varies based on individual circumstances, but some claimants could receive up to £5,000.
When will the compensation payments be made?
The DWP has stated that payments will be made by the end of summer 2024.
How can I check if I qualify for compensation?
Check your Universal Credit records or contact the DWP to confirm if you meet the eligibility criteria.
I have had a brain heammorage followed by a brain bleed and a stroke and labour are giving me nothing, it was good enough medically for the tories but overlooked by the labour party and I find it an absolute disgrace.
How do they overlook this I am English born and have paid everything up to date, I lived in Canada for 8 years and was treated much better.