Thousands of benefit claimants across the UK could be in line for significant backdated payments, potentially worth up to £5,000, following an administrative error by the Department for Work and Pensions (DWP). Independent watchdogs have issued an urgent alert urging individuals to check their eligibility.
The Severe Disability Premium Gateway Error
The issue centres on the Severe Disability Premium (SDP) Gateway, a set of rules designed to protect certain claimants when they moved from legacy benefits to Universal Credit. The DWP has admitted that between January 2021 and October 2022, it incorrectly applied these rules to some individuals who were already receiving Universal Credit.
This mistake meant that some claimants, who should have been entitled to transitional SDP payments, did not receive the money they were owed. The error was identified by the department's own internal process review.
Who Might Be Affected and What to Do
The DWP estimates that approximately 2,600 claimants may have been impacted by this specific error. Those affected are likely to be people who were receiving a Severe Disability Premium as part of a legacy benefit, such as Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance, and then claimed Universal Credit.
If you believe you may be affected, you do not need to contact the DWP immediately. The department has stated it is proactively reviewing cases and will write directly to those it identifies as being owed money. Payments will be made automatically, including any arrears calculated from the date the claimant should have started receiving the SDP transitional element.
However, welfare rights organisations and the Independent Case Examiner (ICE) are advising all claimants who think they might have missed out to be vigilant. Keep an eye on your correspondence from the DWP and ensure your contact details are up to date with the department.
A History of SDP Issues and Wider Implications
This is not the first problem associated with the Severe Disability Premium transition. A major legal case previously forced the government to compensate thousands of claimants who lost out when moving to Universal Credit before the SDP Gateway was established in January 2019.
The latest error highlights ongoing concerns about the complexity of moving from the old benefits system to Universal Credit. It serves as a stark reminder for all claimants, particularly those with disabilities or long-term health conditions, to thoroughly check their award notices and seek independent advice if payments seem incorrect.
While the DWP works to rectify this mistake, the incident underscores the critical role of independent oversight bodies in safeguarding claimant rights and ensuring the welfare system operates fairly and accurately.
