The Department for Work and Pensions (DWP) has published guidance for its Successful Legacy Appeals Compensation Scheme, which offers a one-off payment to certain Universal Credit claimants who were financially disadvantaged due to a DWP error when moving from legacy benefits.
Who Is Eligible?
The scheme applies to a small group of claimants whose legacy benefits—such as Housing Benefit, Child Tax Credit, Working Tax Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), or Income Support—were wrongly stopped. To qualify, claimants must have claimed Universal Credit within one month of their legacy benefit ending due to the DWP's decision to stop payments. Additionally, the amount received through Universal Credit must have been lower than the previous benefit, and the decision to stop the legacy benefit must have been overturned or reversed.
How Compensation Is Calculated
Successful applicants receive a lump sum calculated by taking the claimant's biggest monthly financial loss and multiplying it by 12. For example, someone who lost £50 per month after moving to Universal Credit would receive £600, while a claimant £100 worse off monthly would get £1,200. The compensation aims to address the financial loss suffered because claimants could not return to their previous benefit after successfully challenging the original decision.
Background and Application
This scheme follows a 2020 Court of Appeal judgment involving claimants whose legacy benefits were wrongly stopped. The court determined that while reinstatement to previous benefits was not possible after claiming Universal Credit, those receiving lower support had suffered a financial loss. The DWP created the compensation scheme for affected individuals. Applications are made through the GOV.UK website, where full eligibility details and required evidence are provided.
