Numi Kent
The Department for Work and Pensions (DWP) has officially confirmed a September 2025 deadline to complete outstanding compensation payments to thousands of disabled individuals who were financially disadvantaged during the transition from legacy benefits to Universal Credit (UC).
This announcement follows a long legal battle and High Court rulings, which revealed that thousands of claimants were not properly protected during the shift, particularly those receiving the Severe Disability Premium (SDP).
Why Is Compensation Being Paid?
The Severe Disability Premium was a key benefit top-up that provided extra support to disabled individuals with high care needs who lived alone or without a full-time caregiver.
However, when claimants were moved from legacy benefits (like ESA) to Universal Credit, many lost this additional support.
Following multiple legal challenges, the High Court ruled that the DWP failed to protect the incomes of those affected. As a result, the government committed to compensating the 57,000 people impacted by this oversight.
Breakdown of the Compensation Scheme
Out of the 57,000 eligible claimants, approximately:
- 44,000 have already received their compensation payments
- 13,000 cases remain pending due to complex circumstances
- The total fund set aside for these repayments is £452 million
- Some individual payouts could exceed £5,000, depending on the length and severity of financial loss
The DWP has stated that all remaining payments will be completed by September 2025.
Key Details at a Glance
| Category | Details |
|---|---|
| Total claimants affected | 57,000 |
| Cases already resolved | 44,000 |
| Pending complex cases | 13,000 |
| Total compensation fund | £452 million |
| Potential maximum individual payment | Over £5,000 |
| Compensation deadline | September 2025 |
| Primary cause of payment | Loss of Severe Disability Premium during UC transition |
Who Is Eligible for the £5,000 Compensation?
Eligible individuals are:
- Those who transitioned from legacy benefits to Universal Credit
- Specifically those who previously received the Severe Disability Premium
- Claimants who did not receive transitional protection and were left financially worse off
If you were impacted and haven’t yet received a payment, you may be among the 13,000 complex cases still being processed.
What the DWP Says
A DWP spokesperson stated:
“We are fully committed to identifying claimants that are owed arrears and providing the financial support to which they are entitled as quickly as possible, with the majority of these cases already resolved.”
The department reaffirmed its commitment to completing all payments before the September 2025 deadline, ensuring no eligible individual is left without support.
What Should Claimants Do?
If you believe you’re eligible:
- Check your benefit history if you moved from ESA or other legacy benefits to UC between 2017–2020.
- Confirm whether you were receiving Severe Disability Premium before the transition.
- Contact the DWP directly if you have not yet been contacted or paid.
Keeping personal documentation and being proactive can help ensure you receive any owed compensation promptly.
The DWP’s confirmation of a September 2025 deadline brings long-awaited clarity for 13,000 disabled benefit claimants who are still waiting for their rightful compensation.
With a total of £452 million allocated and individual payments potentially exceeding £5,000, this initiative seeks to correct past injustices and offer relief to some of the UK’s most vulnerable individuals.
If you’re affected, make sure to act soon—time is running out to get what you’re owed.
FAQs
Why are some claimants receiving over £5,000 from the DWP?
Because they lost out on the Severe Disability Premium when moved to Universal Credit without proper income protection.
When will all compensation payments be made?
The DWP has set a final deadline of September 2025 to process and complete all outstanding compensation claims.
How can I check if I’m eligible for the compensation?
You should review your benefit transition history and contact the DWP if you were receiving SDP and moved to UC between 2017–2020.