{"id":16510,"date":"2025-07-22T22:24:07","date_gmt":"2025-07-22T22:24:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/16510\/"},"modified":"2025-07-22T22:24:07","modified_gmt":"2025-07-22T22:24:07","slug":"date-when-thousands-of-universal-credit-households-will-get-1000s-back-after-dwp-claim-error","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/16510\/","title":{"rendered":"Date when thousands of Universal Credit households will get \u00a31,000s back after DWP claim error"},"content":{"rendered":"<p>THE Department for Work and Pensions (DWP) has confirmed when thousands will get \u00a31,000s back after a major error.<\/p>\n<p>The payments are being issued to people who received certain disability <a href=\"https:\/\/www.thesun.co.uk\/topic\/benefits\/\" rel=\"nofollow noopener\" target=\"_blank\">benefits<\/a> such as <a href=\"https:\/\/www.thesun.co.uk\/topic\/employment\/\" rel=\"nofollow noopener\" target=\"_blank\">Employment<\/a> and Support Allowance (ESA) and were moved to Universal Credit.<\/p>\n<p><a href=\"#\"><img decoding=\"async\" alt=\"British pound banknotes\" data-credit=\"\" data-img=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/dsc2601jpg-JS962415597.jpg\" data-caption=\"Thousands who moved to Universal Credit are still owed compensation\"   loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/dsc2601jpg-JS962415597.jpg\" role=\"img\"\/><\/a><\/p>\n<p>1<\/p>\n<p>Thousands who moved to Universal Credit are still owed compensation<\/p>\n<p>It was found some claimants unfairly lost out on Severe <a href=\"https:\/\/www.thesun.co.uk\/topic\/disability\/\" rel=\"nofollow noopener\" target=\"_blank\">Disability<\/a> Premiums (SDP) and Enhanced Disability Premiums (EDP) during the transition, resulting in a drop of income.<\/p>\n<p>Both premiums offered additional financial support on top of the standard allowance for certain means-tested benefits.<\/p>\n<p>Tens of thousands who transferred to <a href=\"https:\/\/www.thesun.co.uk\/topic\/universal-credit\/\" rel=\"nofollow noopener\" target=\"_blank\">Universal Credit<\/a> and missed out on this protection have now been found to be owed arrears.<\/p>\n<p>Around 57,000 people are reportedly thought to be affected by the issue, with the vast majority having now received redress.<\/p>\n<p>But, the DWP has confirmed around 13,000 cases are yet to be processed and cleared.<\/p>\n<p>In its annual report published earlier this month, it said: &#8220;Unfortunately, some underpayments may be owed to customers who no longer have an active ESA claim and restrictions in data make it difficult to identify, assess and correct these errors.&#8221;<\/p>\n<p>The department said it was working its way through all the remaining 13,000 cases which should be completed by September.<\/p>\n<p>The report added: &#8220;We are working to both correct existing errors and to prevent new errors in the new premiums cases.&#8221;<\/p>\n<p>The total arrears being paid to the roughly 57,000 claimants who missed out on SDP and EDP is worth \u00a3452million.<\/p>\n<p>Solicitors Leigh Day, who brought a legal challenge for claimants on disability benefits who didn&#8217;t receive income protection while moving over to Universal Credit, secured a settle for 275 claimants who list their SDP earlier this year.<\/p>\n<p>Stop handing out new cars for FOOD INTOLERANCE says Kemi Badenoch as she demands Labour cut ballooning benefits bill<\/p>\n<p>These claimants were awarded between \u00a3200 and \u00a33,000 for the loss of income they incurred.<\/p>\n<p>We have asked the DWP how the remaining 13,000 people affected by the issue will receive any compensation and will update this story when we have heard back.<\/p>\n<p>We have also asked how much the approximately 44,000 who have already received compensation got on average.<\/p>\n<p>Will I need to move to Universal Credit?<\/p>\n<p>The DWP is currently moving everyone from old-style &#8220;legacy&#8221; benefits onto Universal Credit, through a process known as managed migration.<\/p>\n<p><a href=\"https:\/\/www.thesun.co.uk\/topic\/universal-credit\/\" rel=\"nofollow noopener\" target=\"_blank\">Universal Credit<\/a>\u00a0was set up to replace these\u00a0<a href=\"https:\/\/www.thesun.co.uk\/topic\/benefits\/\" rel=\"nofollow noopener\" target=\"_blank\">benefits<\/a>\u00a0and the scheme kicked off in November 2022 after a successful pilot in July 2019.<\/p>\n<p>As part of the process,\u00a0<a href=\"https:\/\/www.thesun.co.uk\/topic\/homes\/\" rel=\"nofollow noopener\" target=\"_blank\">households<\/a>\u00a0on legacy benefits are sent &#8220;migration notices&#8221; in the post which tell them how to make the move to Universal Credit as it&#8217;s not automatic.<\/p>\n<p>Households must apply for Universal Credit within three months of receiving their managed migration letter.<\/p>\n<p>Failing to do this can result in\u00a0<a href=\"https:\/\/www.thesun.co.uk\/money\/27250360\/warning-tax-credits-payments-stopping-avoid-missing-cash\/\" rel=\"nofollow noopener\" target=\"_blank\">benefits being stopped<\/a>.<\/p>\n<p>Tax credits, income-based jobseeker&#8217;s allowance, income support and housing benefit (for those under the\u00a0<a href=\"https:\/\/www.thesun.co.uk\/topic\/state-pension\/\" rel=\"nofollow noopener\" target=\"_blank\">state pension<\/a>\u00a0age) were permanently discontinued in April.<\/p>\n<p>The remaining households, currently claiming income-related employment\u00a0and support allowance (ESA), will be asked to move to Universal Credit by December 2025.<\/p>\n<p>Can I get help claiming Universal Credit?<\/p>\n<p>As well as benefit calculators, anyone moving from\u00a0legacy benefit to Universal Credit can find help in a number of ways.<\/p>\n<p>You can visit your local Jobcentre by searching at\u00a0<a href=\"https:\/\/find-your-nearest-jobcentre.dwp.gov.uk\/\" rel=\"nofollow noopener\" target=\"_blank\">find-your-nearest-jobcentre.dwp.gov.uk\/<\/a>.<\/p>\n<p>There&#8217;s also a free service called Help to Claim from Citizen&#8217;s Advice:<\/p>\n<p>England:\u00a00800 144 8 444Scotland:\u00a00800 023 2581Wales:\u00a008000 241 220<\/p>\n<p>You can also get help online from advisers by visiting,\u00a0<a href=\"https:\/\/www.citizensadvice.org.uk\/about-us\/contact-us\/contact-us\/help-to-claim\/\" rel=\"nofollow noopener\" target=\"_blank\">citizensadvice.org.uk\/about-us\/contact-us\/contact-us\/help-to-claim<\/a>.<\/p>\n<p>Will I be better off on Universal Credit?<\/p>\n<p class=\"article__content--intro\">ANALYSIS by James Flanders, The Sun&#8217;s Chief Consumer Reporter:<\/p>\n<p>Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.<\/p>\n<p>A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit.<\/p>\n<p>Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don&#8217;t lose out on cash immediately.<\/p>\n<p>The majority of those &#8211; around 400,000 &#8211; are claiming employment support allowance (ESA).<\/p>\n<p>Those who move voluntarily and are worse off won&#8217;t get these top-up payments and could lose cash.<\/p>\n<p>Those who miss the managed migration deadline and later make a claim may not get transitional protection.<\/p>\n<p>The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.<\/p>\n<p>There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.<\/p>\n<p>Examples of those who may be entitled to less on Universal Credit include:<\/p>\n<p>Households getting ESA and the severe disability premium and enhanced disability premiumHouseholds with the lower disabled child addition on legacy benefitsSelf-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended<\/p>\n<p>Either way, if these households don&#8217;t switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.<\/p>\n<p>Do you have a money problem that needs sorting? Get in touch by emailing <a href=\"https:\/\/www.thesun.co.uk\/money\/35955816\/disability-benefits-universal-credit-managed-migration\/mailto:squeezeteam@thesun.co.uk\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">money-sm@news.co.uk<\/a>.<\/p>\n<p>Plus, you can join our <a aria-label=\"Sun Money Chats and Tips (opens in a new tab)\" href=\"https:\/\/www.facebook.com\/groups\/995803138510683\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Sun Money Chats and Tips<\/a> Facebook group to share your tips and stories<\/p>\n","protected":false},"excerpt":{"rendered":"THE Department for Work and Pensions (DWP) has confirmed when thousands will get \u00a31,000s back after a major&hellip;\n","protected":false},"author":2,"featured_media":16511,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[4029,84,4176,4174,4175,1370,56,54,55,7160],"class_list":["post-16510","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-benefits","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-section-moneynews-money","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-universal-credit"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/16510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=16510"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/16510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/16511"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=16510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=16510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=16510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}