DWP Faces Backlash Over Delayed Compensation for Universal Credit and ESA Claimants
DWP under fire over Universal Credit compensation delays

The Department for Work and Pensions (DWP) is under fire after acknowledging significant delays in moving claimants from legacy benefits to Universal Credit, potentially entitling thousands to compensation. However, campaigners argue the system remains unfair and overly complex.

Who is Affected?

The issue primarily impacts those previously receiving Severe Disability Premium (SDP) or Enhanced Disability Premium (EDP) under Employment and Support Allowance (ESA), who were transitioned to Universal Credit after a 2019 court ruling. Many faced substantial income drops during the transfer.

The Compensation Scheme

While the DWP has set up a compensation process, critics highlight several problems:

  • Complex application requirements deter vulnerable claimants
  • Lengthy processing times create financial hardship
  • Inconsistent decision-making leaves many without support

Campaigners' Concerns

Disability rights organisations warn that the compensation scheme fails to address systemic issues with Universal Credit's design. "The entire system needs overhauling to prevent further harm to disabled people," said a spokesperson for Disability Rights UK.

What Happens Next?

The DWP maintains it is processing claims as quickly as possible, but with growing political pressure and potential legal challenges, this issue looks set to continue dominating debates about welfare reform.