If you lost money after moving from legacy benefits to Universal Credit, you could be owed up to £5,000 from the DWP. This major compensation plan affects tens of thousands of disabled people across the UK who were left worse off by the transition to the new system. If you’re one of them, this article explains what’s happening, how much you could get, and what steps to take next.
Background
Between 2011 and 2019, people receiving legacy benefits like ESA, JSA, or Income Support often got extra money through Severe or Enhanced Disability Premiums. These payments helped cover the additional costs that come with living with a disability—things like travel, heating, or personal care.
But when Universal Credit rolled out, many of those premiums disappeared for people who transferred early. As a result, some claimants lost more than £200 a month. After legal action and growing public pressure, the government has now agreed to compensate those affected.
Details
Here’s a quick summary of what you need to know:
| Key Info | Details |
|---|---|
| Payment Type | One-time compensation up to £5,000 |
| Who Qualifies? | Disabled claimants who lost premiums |
| Premiums Involved | SDP and EDP (Severe/Enhanced Disability) |
| Timeframe | Transferred to UC before January 16, 2019 |
| Application Needed? | No – DWP is contacting eligible individuals |
| Payment Period | March to August 2025 |
| Total Affected | Over 57,000 people |
Eligibility
You may qualify for this compensation if:
- You were receiving a legacy benefit that included the Severe or Enhanced Disability Premium.
- You moved to Universal Credit before January 16, 2019.
- You lost income during the transition.
- You were not protected by transitional payments.
Here are two examples:
- Jane switched from ESA to UC in 2018 and lost £172 a month. She is now entitled to backpay compensation.
- Daniel and his partner, who were on joint benefits, lost over £120 a month. They now qualify for a lump-sum payment based on how long they were underpaid.
Amounts
The total you receive depends on how much you lost and for how long.
| Premium Type | Monthly Loss Estimate |
|---|---|
| Enhanced Disability (Single) | ~£84 |
| Enhanced Disability (Couple) | ~£120 |
| Severe Disability (Single) | ~£172 |
| Severe Disability (Couple) | ~£246 |
| Disabled Child Premium | ~£177 per child |
If you lost any of these for several years, it could easily add up to £5,000 or more.
Process
The good news? You don’t need to apply. The DWP is reviewing past benefit claims and identifying those eligible.
Here’s how it works:
DWP is checking records from 2011 to 2020 to identify underpaid claimants.
Notification Letters Sent
If you’re eligible, the DWP will send a letter outlining your compensation details.
Payments Made in Phases
- 35,000 current UC claimants (post-2020 moves): Paid by August 2025
- 15,000 earlier claimants (2018–2020): Payments started March 2025
- 7,000 complex former claimants: Delays expected but still being processed
If you haven’t heard by the end of 2025 and think you’re eligible, contact the DWP or a benefits advisor for guidance.
Tips
While waiting, here are some smart steps you can take:
- Keep Your Paperwork: Store old benefit letters or statements—they could help.
- Update Contact Info: Make sure DWP has your current phone number and address.
- Be Scam Aware: DWP won’t ask for your bank details via text or email. Don’t fall for fake messages.
- Use Advisors: Get free help from Citizens Advice or local support services.
- Open All DWP Letters: Don’t ignore official-looking post—you could miss your notice.
This compensation is a long-overdue step to correct a policy failure that affected thousands. If you were impacted, help is on the way—you just need to stay informed and be ready when your letter arrives.
FAQs
Do I need to apply for the £5,000 payment?
No, DWP will contact you if you’re eligible.
When will compensation be paid?
Between March and August 2025, depending on your case.
What if I moved to UC after 2019?
You likely won’t qualify unless under specific exceptions.
How do I know if I lost disability premiums?
Check past statements or speak to a benefits advisor.
Can I contact DWP if I hear nothing?
Yes, especially if you believe you qualify by the end of 2025.
