Numi Kent
The Department for Work and Pensions (DWP) has confirmed a September 2025 deadline to complete payments of compensation owed to thousands of disabled benefit claimants.
This move follows a legal battle and High Court rulings which revealed that tens of thousands were unfairly left worse off after moving from legacy benefits to Universal Credit (UC).
What Is the Compensation For?
This compensation applies to claimants who lost the Severe Disability Premium (SDP) when they transitioned from older benefits to Universal Credit. The SDP was a component meant to support severely disabled individuals living independently without a carer.
After the rollout of Universal Credit, many disabled individuals were not provided with transitional protection, leading to substantial financial losses.
In response, the courts ruled that the government failed to uphold its duty to protect the income of some of the UK’s most vulnerable individuals.
Who Is Affected?
According to the latest figures:
- 57,000 claimants were identified as eligible for compensation.
- 44,000 claimants have already received their due payments.
- Around 13,000 complex cases remain unresolved.
The DWP has set a firm deadline of September 2025 to process the remaining compensation claims.
How Much Is the Compensation?
The DWP estimates the total cost of the compensation exercise at £452 million, with individual compensation payments potentially exceeding £5,000.
These payments are not automatic for everyone—only those who transitioned to Universal Credit without transitional protection for the SDP are eligible. The DWP is reviewing these cases to identify underpayments and correct them accordingly.
Breakdown of Key Compensation Figures
| Details | Figure |
|---|---|
| Total claimants affected | 57,000 |
| Already compensated | 44,000 |
| Complex cases pending | 13,000 |
| Estimated total compensation | £452 million |
| Individual payment value (estimated) | Over £5,000 per claimant |
| Final deadline for payments | September 2025 |
Why This Compensation Matters
This compensation is significant because it reflects a historic failure in the UK’s benefits transition process. The ruling acknowledged that disabled individuals experienced unjust financial hardship, often having to survive on reduced income for extended periods.
The payment is not just a reimbursement—it’s a recognition of wrongdoing and a step toward restoring public trust.
How to Check If You’re Eligible
If you believe you may be eligible for the compensation:
- Contact the DWP if you transitioned from ESA (Employment and Support Allowance) or other legacy benefits and lost the SDP.
- Check your benefit transition history between 2017 and 2020, when most of the problematic transitions occurred.
- If your case is still under review, you should receive a letter from the DWP before the September deadline.
It’s advisable to keep records and monitor correspondence closely, especially if your situation involved complex needs or long-term disability.
The DWP’s September 2025 deadline for compensating affected benefit claimants marks the final stage in a long-standing issue stemming from the Universal Credit rollout.
With over £452 million earmarked for this initiative, thousands are expected to receive overdue payments that could exceed £5,000 each. If you or someone you know lost the Severe Disability Premium after moving to Universal Credit, now is the time to act.
Check your eligibility, monitor communication from DWP, and ensure your rightful compensation is received before the deadline.
FAQs
Who qualifies for this DWP compensation?
Anyone who lost their Severe Disability Premium after switching from legacy benefits to Universal Credit without proper transitional protection.
How much could I receive in compensation?
Individual payments can exceed £5,000, depending on how much you lost during the benefit transition period.
What if I haven’t received anything yet?
If you’re part of the 13,000 complex cases, the DWP has committed to resolving your claim by September 2025. Contact them for updates.