DWP to compensate 57,000 claimants up to £5,000

The Department for Work and Pensions (DWP) has announced significant compensation payments for benefit claimants. Up to 57,000 people will receive payments of up to £5,000 this year. These payments come after a High Court ruling found that the government failed to protect the incomes of severely disabled claimants when they were switched to Universal Credit. Claimants had their monthly income reduced by about £180 without proper protections. To qualify for compensation, claimants must have received specific legacy benefits that included certain disability premiums before moving to Universal Credit. Payments will be backdated to cover the period from when claimants switched to Universal Credit until new income protection rules began in February. DWP chief Neil Couling explained the timeline for payments. The first group of about 35,000 current Universal Credit claimants will receive their money by August 2025. Over 4,000 have started receiving payments already. The second group, with 15,000 people owed payments from 2018 to 2020, will get their compensation by the end of March, with all payments cleared by August 2025. The third group consists of 7,000 former Universal Credit claimants who are still owed money. The DWP has not set a deadline for these payments as they are still figuring out the process. Many claimants can expect substantial payouts due to back payments covering several years.