Thousands of Department for Work and Pensions (DWP) claimants whose benefit payments dropped when they moved from one of the ‘legacy benefits’ to Universal Credit are set to receive up to £405 extra a month from October.
The reduction in payment affected those who switched to Universal Credit from Income Support, Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA), Housing Benefit or Pension Credit - if they were also receiving a top-up allowance called Severe Disability Premium (SDP).
Claimants who moved from those legacy benefits to Universal Credit, were stunned to discover the amount they received was far lower than they had previously receiving.
As a result, campaigners fought to get back the lost money and the DWP agreed to give 'transitional payments' to make up the difference.
These came in the form of extra monthly payments of either £120, £285 or £405 which were awarded depending on whether a claim was made as a single person or as a couple, and whether or not they were expected to be looking for work.
Birmingham Live reports that Justin Tomlinson, Minister of State (Minister for Disabled People, Health and Work) at the DWP, has now issued a statement confirming these transitional sums will be added to a claimants’ regular Universal Credit payment from October 8.
He told MPs the DWP had already paid out over £50 million to around 15,000 people who lost out when switching from a legacy benefit to Universal Credit.
He also said the extra money will now be built into the regular Universal Credit payment, rather than being paid separately to claimants.
Mr Tomlinson explained: "On July 22, 2019, we laid legislation to provide additional financial support for former Severe Disability Premium (SDP) recipients who had moved to Universal Credit (UC) on account of a change of circumstances.
"As of January 17, 2020, we had already paid over 15,000 people, totalling more than £51.5 million.
“The UC (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019 provide for the conversion of these transitional payments into transitional elements.
"This means that payments will be made through the UC system rather than manually, and all transitional protection will be subject to the same rules.
"I will be signing a Determination setting the conversion day to 8 October 2020. This is when the UC system will have capacity to convert SDP transitional payments to transitional element."
Although the DWP stopped anyone else on SDP from moving across to Universal Credit after January 2019, many had already been transferred to the new welfare scheme.
A number of these other claimants are still fighting in the courts to get the extra money paid to them as well.
Leigh Day solicitors believe that up to 13,000 disabled people in the UK were affected by the change, losing out on average of £180 a month in benefit payments when they were moved on to Universal Credit.
The DWP has been paying some compensation for the loss of income when moving to Universal Credit, but not the full amount of £180.
