DWP Rolls Out Unexpected £5,000 Payments for Eligible Benefit Claimants
Thousands of benefit claimants are set to receive one-off payments worth £5,000 from the Department for Work and Pensions (DWP) under a compensation initiative aimed at addressing losses suffered during the transition to Universal Credit (UC).
These payouts are part of a broader rectification plan designed to compensate those who were moved from legacy benefits—such as Employment and Support Allowance (ESA)—to Universal Credit before transitional protections were established, leading many to lose out on critical support like the Severe Disability Premium (SDP).
Background: Why the Compensation Is Being Offered
Between 2013 and 2021, the UK’s welfare system underwent a significant overhaul, shifting claimants from older benefit schemes to Universal Credit. However, during this migration, tens of thousands of disabled claimants lost their Severe Disability Premium, which had previously provided up to £180 a month in additional support.
This occurred because the government did not initially install safeguards for these claimants during the early phases of the migration. In response to legal action and public pressure, the DWP has started issuing compensation payments to affected individuals.
How Many People Are Affected?
- 57,000 claimants were originally identified as impacted.
- A large portion have already received compensation.
- Approximately 13,000 more complex cases are still being processed, with payments expected by September 2025.
The DWP has confirmed that efforts are ongoing to ensure every eligible claimant receives the compensation they are entitled to.
Who Is Eligible for the £5,000 Payment?
To qualify for the £5,000 DWP compensation, you must:
- Have been receiving legacy benefits such as ESA before switching to Universal Credit.
- Have lost the Severe Disability Premium during the transition period.
- Have been moved to UC before transitional protections were put into place in 2019.
Claimants should be contacted automatically if eligible. However, those who believe they were affected and have not received a payout are strongly encouraged to come forward and make a claim.
Legal Advocacy and Transparency Demands
Ryan Bradshaw, a solicitor with Leigh Day who has been advocating for affected claimants, emphasized the need for clarity and fairness in how compensation is calculated. He stated:
“We welcome the compensation, but there must be a transparent and lawful calculation method so claimants can verify the amount they’re owed.”
This reflects broader concerns about consistency and justice for those who may still be waiting or unaware of their eligibility.
DWP Statement and Ongoing Commitment
A spokesperson from the DWP reassured the public with the following:
“We are fully committed to identifying and compensating all eligible individuals who were moved to Universal Credit after a change in their circumstances.
This is a complex process, but the majority of affected claimants have already been paid, and efforts continue to finalize remaining cases.”
Payment Details Table
| Criteria | Details |
|---|---|
| Compensation Amount | Up to £5,000 one-off payment |
| Benefit Transition | From ESA or other legacy benefits to UC |
| Reason for Compensation | Loss of Severe Disability Premium |
| Total Affected Claimants | Around 57,000 |
| Remaining Cases (as of now) | Approximately 13,000 |
| Deadline for Processing | By September 2025 |
| Action Required | DWP will contact eligible claimants; self-checking encouraged |
The DWP’s compensation scheme serves as a much-needed correction for those disabled individuals who were financially disadvantaged during the welfare overhaul. With thousands already compensated and thousands more expected to receive payouts, this initiative highlights the importance of policy accountability and claimant advocacy.
If you suspect you were impacted, don’t wait—contact the DWP or consult a legal advisor to verify your case. A £5,000 payment could be waiting for you.
FAQs
Who qualifies for the DWP’s £5,000 payment?
Individuals who lost their Severe Disability Premium after moving from legacy benefits to Universal Credit without transitional protection before 2019 may qualify.
Will I be contacted automatically by the DWP if I am eligible?
Yes, the DWP is reaching out to eligible claimants. However, if you believe you were affected and haven’t been contacted, you’re advised to make an inquiry.
What is the deadline for receiving the payment?
The DWP has stated it aims to process all remaining cases—approximately 13,000 complex ones—by September 2025.
