Kim
Thousands of UK residents who previously received disability benefits may be owed £1,000s in back payments from the Department for Work and Pensions (DWP), following a government-confirmed error affecting those who were transferred to Universal Credit from older legacy benefits.
This major compensation announcement stems from a failure to properly apply transitional protections for claimants who qualified for specific disability premiums. Many of these individuals have unknowingly missed out on vital income support for years.
What Caused the Underpayments?
The issue arose when people claiming Employment and Support Allowance (ESA) and other legacy benefits were moved to Universal Credit—often before January 2019. During this migration, claimants lost access to Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP).
These premiums were originally added to income-related benefits to support people living with significant disabilities.
However, when Universal Credit was introduced, the government did not initially include these protections. This caused monthly losses of up to £180 per person, resulting in substantial underpayments.
DWP Disability Back Payment Overview
| Category | Details |
|---|---|
| Estimated number of affected people | 57,000 |
| Cases still pending review | Around 13,000 |
| Average monthly loss | Up to £180 |
| Estimated average compensation | £5,000–£7,000+ |
| Largest confirmed payout | Over £31,000 |
| Total cost of correction exercise | £452 million |
| Final resolution deadline | September 2025 |
Who Is Eligible for Back Payments?
You may qualify for compensation if you meet the following conditions:
- You received legacy disability benefits (such as income-based ESA, Income Support, or Housing Benefit).
- You were moved to Universal Credit before January 2019.
- You previously received SDP or EDP, which were not included in your new UC payments.
- You experienced a drop in income during the transition period.
Many people affected were unaware that these premiums had been removed. In numerous cases, their disability benefit income dropped without warning, and without the proper financial protections in place.
How Much Could You Receive?
Payments vary depending on the duration you were underpaid and the type of premium you were entitled to. Claimants who missed out on Severe Disability Premium can expect larger back payments.
Estimated amounts include:
- Loss of SDP only: £60–£70 per week
- Loss of EDP only: £15–£30 per week
- Combined loss: £80–£180 per month
Some claimants may also be entitled to additional compensation for stress or injury to feelings, depending on the circumstances of their case.
Why This Update Matters
Although most cases have been addressed, around 13,000 claimants are still waiting for their payments to be processed. Many more may not even be aware that they were affected. In its recent update, the DWP acknowledged that some people no longer have active ESA claims, making them harder to trace.
If you suspect that you were impacted but have not been contacted, it’s essential to proactively check your records and reach out for a review.
Steps to Take Right Now
To ensure you don’t miss out on the compensation you’re owed, follow these steps:
- Check your benefit history: Review whether you received disability premiums before switching to Universal Credit.
- Verify your UC transition date: Focus especially on those moved before January 2019.
- Review payment discrepancies: Look for drops in your benefit payments after the switch.
- Contact DWP: If you believe you’re eligible but haven’t received any letter, request a formal review of your case.
- Keep records ready: Provide any supporting documentation, including award letters or payment statements, to speed up the process.
When Will Payments Be Made?
The DWP has committed to resolving all remaining cases by September 2025. Most of the eligible claimants have already received their back payments, but some complex or delayed cases are still under review.
The payments will include:
- Backdated compensation from the point of transition
- Any additional emotional damages where applicable
- Interest or hardship payments in some cases
This latest update from the DWP confirms that thousands of people with disabilities may have been unintentionally short-changed by the government during their transition to Universal Credit. With back payments averaging £5,000–£7,000 or more, this could represent a life-changing sum for many families.
If you were impacted, don’t wait. Check your benefit history, confirm whether you lost access to disability premiums, and contact the DWP to ensure your case is reviewed. With a fixed deadline for resolution and £452 million set aside for compensation, there’s no better time to take action.
FAQs
What if I no longer receive any benefits—am I still eligible?
Yes. Even if you’re no longer on ESA or Universal Credit, you could still be entitled to back payments. The DWP is working to identify and resolve such cases, but if you believe you’re eligible, contact them directly.
Can I still claim if I wasn’t contacted by DWP?
Absolutely. You do not need to wait for a letter. If you believe you were affected, you can request a reassessment of your case and provide your transition history.
How long does it take to receive the payment?
It depends on the complexity of your case. Some claimants receive payment within weeks, while others with missing documentation may wait several months. The DWP aims to finalize all cases by September 2025.