Are you among the benefit claimants due thousands in compensation?

If you’re a disability benefits claimant who was moved onto universal credit before January 2019, you could be owed thousands in compensation.

People who saw their income drop after losing severe or enhanced disability premiums may be due significant payouts.

The loss of income was first challenged in the High Court in 2019 by two benefit claimants who won their case.

This led to another successful challenge by 275 claimants.

These claimants received payouts for the stress and injury to feelings they suffered.

And by August 2025, a compensation scheme will be set up to repay them for their loss of income.

It is estimated payouts for these 275 people could be worth more than £5,000 each and thousands of other benefits claimants could also be entitled to compensation.

Philippa’s story

One of the 275 people who brought a claim is Philippa from Chesterfield.

She suffers from fibromyalgia, which causes pain, dehydrated discs in her spine and brain fog.

When she moved onto universal credit in December 2018, her income dropped £184.21 a month as a result of losing her enhanced disability premiums.

This meant she could no longer afford the prepared meals that met her nutritional needs, leading to a vitamin D deficiency that worsened her condition.

She said:

“When you’re on benefits, you don’t feel secure. Every day you wait for the little brown envelope.

“The compensation has meant the difference between being able to access prepared meals which cover my nutritional needs, versus buying the cheapest ready meals which are not nutritionally balanced enough.”

What has been done to stop people losing out?

The initial legal action in 2019 resulted in the introduction of the severe disability premium (SDP) gateway.

The SDP gateway stopped people receiving severe or enhanced disability premiums from moving onto universal credit so that they wouldn’t lose out financially.

In January 2021, the gateway was removed. Transitional protection now tops up your universal credit so that you are not substantially worse off when you switch from legacy benefits.

However, the transitional element decreases as your universal credit entitlement increases.

Ken Butler from Disability Rights UK said:

“After transitional help is eroded after time, universal credit for disabled people will be significantly less generous than employment and support allowance and the other legacy benefits it has replaced.”