Some people who receive Universal Credit might be in line for a significant payment because of a legal case being handled by a law firm called Leigh Day. The issue involves thousands of people who lost their Severe Disability Premium (SDP) when they were moved over to Universal Credit from older benefits.
Leigh Day is currently representing 275 people in this case, but they believe up to 13,000 others could also be owed money. Some of these payments could be more than £5,000 per person.
The problem started when people were switched to Universal Credit before January 2019. At the time, the Department for Work and Pensions (DWP) didn’t have a system in place to protect people from losing their SDP, which is extra money for those with severe disabilities. Because of this, many people saw their income drop significantly. Later, the DWP introduced a scheme called the SDP Gateway to prevent this from happening, but it was too late for those who had already lost out.
In addition to losing the SDP, some people also lost the Enhanced Disability Premium (EDP), which meant they could be £180 worse off every month. Two people, known as TP and AR, took the DWP to court over this and won their case. Their victory led to the creation of the SDP Gateway, which now helps protect people from losing money when they move to Universal Credit.
Following this court win, Leigh Day is now helping 275 more people who faced similar problems. The DWP has agreed to set up a compensation scheme by August 2025 to repay people for the income they lost. Ryan Bradshaw, a lawyer at Leigh Day, estimates that each person could receive over £5,000. He also thinks around 15,000 more people might be owed money but haven’t yet made a claim.
Bradshaw said he’s pleased with the outcome for his clients but is concerned about others who haven’t been able to take legal action. He explained that many people lost £180 a month after being moved to Universal Credit before January 2019, and this caused them a lot of stress and hardship. He believes the DWP should urgently create a scheme to compensate everyone who was affected, not just those who took legal action. He also stressed that the mistakes made by the DWP should never happen again.
If you think you might have been affected by the switch to Universal Credit, it’s a good idea to seek advice from a nonprofit organization like Citizens Advice. They can help you understand your rights and guide you on what to do next. You can also find more details about the case on Leigh Day’s website.
