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Thousands entitled to compensation after DWP settles lost income claim

Up to 13,000 benefits claimants could be entitled to thousands of pounds in compensation after the Department of Work and Pensions settled a claim on behalf of disability benefits claimants.

Posted on 04 February 2025

More than 200 benefits claimants have been awarded between £200 and £3,000 in a damages settlement for losing out on income after being moved on to universal credit before January 2019.  

The claimants lost “Severe Disability Premiums” (SDP) in the move on to Universal Credit in the years before the Department of Work and Pensions introduced the SDP Gateway scheme to ensure that people no longer missed out.   

Others also missed out on “Enhanced Disability Premium” (EDP) in the move on to Universal Credit. The drop in income totalled up to £180 a month.  

The loss of income was challenged in the High Court by two benefits claimants, known as TP and AR, represented by law firm Leigh Day. Their court action resulted in the introduction of the SDP Gateway.  

After the High Court ruled in favour of TP and AR, Leigh Day human rights team partner Ryan Bradshaw took up the case on behalf of 275 other claimants who had experienced a similar loss of income after moving on to universal credit.  

He has settled the non-financial element of the claim and the DWP have awarded each of the claimants compensation for the stress and injury to feelings they had suffered.  

The DWP have agreed to an August 2025 deadline to set up a lawful compensation scheme to repay his clients for the loss of income, which he estimates could be worth in excess of £5,000 per person.  

He believes that over 15,000 benefits claimants could also be entitled to financial compensation of some sort.  

Those are people who, like Ryan’s clients, claimed EDP before they were moved on to universal credit before January 2019 and each experienced a sudden loss of up to £180 a month.  

One of Ryan’s clients is 39-year-old Philippa from Chesterfield. Her career has included gaps due to conditions such as a chronic autoimmune condition fibromyalgia which causes pain throughout her body, dehydrated discs in her spine, and brain fog. 

Philippa spoke about her experience of losing DWP payments.

She was an SDP and EDP claimant but was moved on to universal credit in December 2018. Philippa later discovered that she was only receiving transitional protection for SDP, and but nothing for EDP. As a result, Philippa lost £184.21 a month from her income. 

This loss of income meant that Philippa was no longer able to afford prepared meals that met her nutritional needs. Instead, she relied on the cheapest ready meals which led to a vitamin D deficiency which worsened her autoimmune disease. In spring 2019, Philippa’s doctor told her that she needed to start taking iron tablets and vitamin D tablets. 

At the time, Philippa had to use her credit card for bills in the hopes that she may be able to pay it off the following month.  

Philippa appealed her benefits, and after two years it reached the tribunal. As a result, she now receives Personal Independence Payments and has been put back on legacy benefits as well as Universal Credit. While the cost of living still presents a struggle, she said that she now receives enough to pay rent and council tax.  

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. 

“I know people on relatively good incomes who are still struggling with the cost of living.”    

Ryan 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 experienced the loss of £180 a month after they were moved from legacy benefits on to universal credit in the years before January 2019. 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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Ryan Bradshaw
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Ryan Bradshaw

Ryan advises on human rights, discrimination and employment law

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