Many people in the UK who moved from older benefits to Universal Credit lost a large part of their monthly income. This affected those who used to receive extra support known as Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP). These people were left with less money, even though their needs remained the same.
After a long legal fight, the Department for Work and Pensions (DWP) is now being made to pay back this lost income. The courts found that the DWP failed to protect disabled people during the benefits switch. This means that thousands of people could now receive over £5,000 each as compensation.
This legal case is not just about money—it’s about fairness and justice for people who were put in financial hardship. With a full compensation scheme expected by August 2025, many are finally seeing hope for recovery.
How the Legal Fight Started
Two disabled individuals, known as TP and AR, went to court after losing money when moved to Universal Credit. They were supported by a law firm called Leigh Day. The court agreed that the government had done something wrong by not protecting people like them from losing important benefits.
The High Court ruled that:
- The government didn’t give proper financial protection to claimants.
- The sudden loss of income was unfair and discriminatory.
- The DWP must now pay for the hardship caused.
This court decision helped many others. Lawyer Ryan Bradshaw then worked to get payments for 275 more people and pushed the DWP to create a full plan to compensate everyone by August 2025.
Who Can Get This Compensation?
To qualify for the compensation:
- You must have received SDP or EDP before switching to Universal Credit.
- You should have moved to Universal Credit before January 2019.
- You did not receive “transitional protection” to stop income loss.
Estimated Impact
- 275 people have already received payments.
- More than 15,000 others might also be eligible.
- Some people may get over £5,000, depending on how long they lost money.
The Real-Life Struggles People Faced
When people lost their disability premiums, they faced serious problems. For example, a woman named Philippa from Chesterfield shared her story.
She suffers from fibromyalgia and spinal disc issues. She was moved to Universal Credit in 2018. Her income dropped by over £180 a month because only one of her premiums was protected. This led to:
- Using credit cards for basic expenses.
- Eating cheap food, which caused vitamin deficiencies and worsened her condition.
- Waiting two years to get help from a tribunal.
- Finally receiving Personal Independence Payments (PIP) and going back on legacy benefits.
Philippa said the stress was extreme, and the compensation has helped her live a bit better.
How Much Will People Get?
Here is a breakdown of the expected payments:
The DWP says this money will help make up for the financial and emotional hardship these people suffered.
What You Should Do If You’re Affected
If you think you are one of the people who should be paid:
- Check if you were getting SDP or EDP before 2019.
- Look for old benefit letters, bank records, or DWP statements.
- Get legal help or contact DWP for advice.
- Wait for more details from the DWP about how to claim in 2025.
Don’t wait too long. The deadline for compensation is August 2025.
What This Means for the Government and the Law
This case has big consequences for how the government manages benefits:
- It shows the problems in the way the DWP handled benefit changes.
- It sets a rule that disabled people must be protected during any changes.
- It may force the government to change its benefit system in the future.
Lawyer Ryan Bradshaw said:
“The mistakes made here should never be repeated. Thousands of people have suffered because of the DWP’s failure. A fair compensation scheme must be put in place.”
The Bigger Picture: Impact on the Disabled Community
This case has highlighted how hard it can be for disabled people to fight for their rights:
- Many had to go through courts to get justice.
- Sudden benefit cuts caused real harm to health and well-being.
- Future changes must include stronger protections for vulnerable people.
The DWP compensation is a small step toward correcting a serious mistake. But it shows the power of legal action and the importance of fair support for all.