Tens of thousands of disabled people across the UK are finally getting justice. If you lost disability premiums when switching to Universal Credit, the Department for Work and Pensions (DWP) may owe you up to £5,000. The good news? You probably won’t even have to apply.
Let’s break down who qualifies, how much you could receive, when payments are coming, and how to stay prepared so you don’t miss out.
Overview
Between 2011 and 2019, many people claimed legacy benefits like ESA, JSA, or Income Support. These benefits often included extra money for disabled people — called Severe Disability Premium (SDP) or Enhanced Disability Premium (EDP).
But when Universal Credit (UC) came in, some people who moved over lost these crucial payments, leaving them up to £200 short each month.
After several court cases found this unfair and discriminatory, the DWP created a compensation scheme — and it’s finally paying out.
Eligibility
Not sure if you’re in line for a payout? Here’s how to know.
You may be eligible if you:
- Got either SDP or EDP as part of a legacy benefit;
- Switched to UC before January 16, 2019;
- Ended up financially worse off after the switch;
- Didn’t get adequate “transitional protection” from the DWP.
Basically, if you lost a significant chunk of income during the UC transition and no one made it up to you, the government might owe you money.
Example Cases:
| Name | Situation | Monthly Loss | Eligible? |
|---|---|---|---|
| Jane | ESA with SDP, moved in 2018 | £172 | Yes |
| Daniel & Partner | Couple on EDP, moved in 2017 | £120 | Yes |
Amount
How much you’ll get depends on what you lost and for how long.
Here’s a quick breakdown:
| Type of Premium | Monthly Loss |
|---|---|
| Enhanced Disability (Single) | ~£84 |
| Enhanced Disability (Couple) | ~£120 |
| Severe Disability (Single) | ~£172 |
| Severe Disability (Couple) | ~£246 |
| Disabled Child Premium | ~£177/child |
If you’ve been underpaid for years, the backdated total can easily top £5,000.
The DWP will do the math using your actual records. The longer you went without the premiums, the higher your compensation will be.
Process
Wondering what you need to do? In most cases, nothing at all.
Payment Timeline
| Group Affected | Payment Date |
|---|---|
| 35,000 current UC claimants (post-2020) | By August 2025 |
| 15,000 UC claimants (2018–2020) | March–August 2025 |
| 7,000 former UC claimants | Later in 2025 |
Here’s how it works:
- Records Reviewed – DWP is scanning old claim records from 2011 to 2020.
- Letters Sent – If you’re eligible, you’ll get a letter with all the details.
- Payments Issued – Funds will arrive automatically — no application needed.
If you haven’t heard anything by the end of 2025 and believe you qualify, it’s worth chasing up.
Tips
While you wait, a few smart steps can save headaches later:
- Save Your Letters – Keep all benefit records, even from years ago.
- Update Contact Info – Make sure DWP can reach you.
- Avoid Scams – DWP will never text or email asking for bank details.
- Get Help if Needed – Use Citizens Advice or your local council for free support.
- Don’t Ignore Post – Open every letter from the DWP carefully.
This scheme is a rare opportunity for disabled claimants to reclaim what they lost. But staying alert and informed is key to making sure you get every penny owed.
For many, this payment will be more than money — it’s a long-overdue acknowledgment of a systemic failure. Whether it’s paying off debt or just breathing a little easier each month, the DWP £5,000 compensation can make a real difference.
FAQs
Who will get the £5,000 DWP compensation?
People who lost disability premiums after moving to Universal Credit.
Do I need to apply for compensation?
No. The DWP will contact eligible claimants directly.
When will I receive my payment?
Between March and August 2025 depending on your case.
What if I haven’t received a letter?
Wait until end of 2025, then contact DWP or seek advice.
How much will I get from the DWP?
It depends, but some may receive over £5,000.
