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Liverpool Echo
Liverpool Echo
World
Linda Howard & Sophie McCoid

DWP confirms ESA £5,000 underpayment update next month

The Department for Work and Pensions has already paid out £589m to more than 1.5 million people claiming Employment and Support Allowance and thousands more could also be due some cash.

The DWP confirmed it will release a final update on progress of checking 600,000 Employment and Support Allowance (ESA) cases for underpayments next month.

In a brief statement on the GOV.UK website, the DWP announced the statistics will be available from 9.30am on Thursday, July 8 as part of the completion of the exercise - reports the Daily Record.

READ MORE: 21 DWP health conditions that could get you £12,000 in PIP back pay

It said: “Final update of progress on checking cases potentially affected by underpayments of ESA on conversion from other incapacity benefits.

"This publication provides a final update from the Department for Work and Pensions management information as at 1 June 2021.”

ESA was introduced in October 2008 for people who have limited capability to work because they are disabled or ill.

From March 2011 the DWP began reassessing people on incapacity benefits - for example, Incapacity Benefit and Severe Disablement Allowance - for eligibility for ESA.

More than two million claimants were receiving incapacity benefits before reassessment began and the DWP have now reassessed around 1.5 million people, nearly all of those who required a reassessment.

The DWP is correcting some past underpayments of ESA, which are being identified while reassessing incapacity benefit claims.

In the last update, DWP reported that 600,000 ESA claims started the reassessment journey, with 112,000 claimants receiving arrears payments.

The UK Government has already paid out a total of £589million in backdated payments, with claimants receiving an average of £5,000 in January 2020.

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