DWP offers up to £ 5,000 in damages to thousands affected by universal credit change. The department hopes that by August 2025. It will complete the distribution process of universal credit compensation of DWP.
Individuals just need to meet the requirements for fulfillment of conditions because there is no need to submit the application form. DWP will automatically contact the qualified applicants.
DWP universal credit fee
In the United Kingdom, the work and pension department (DWP) confirmed that about 57,000 applicants will receive a fee for a fee, which could be a maximum of £ 5,000.
This decision is followed by a legal verdict that has revealed that thousands of applicants have lost severe disability premiums due to the transition from inherited compensation to the universal loan before introducing the appropriate transitional protection.
What is the reason behind the DWP universal loan fee?
DWP has introduced Universal Credit (UC) to replace inherited benefits such as income support, an extra charge of Jobseeker (JSA) and employment and support fee (ESA). Not only did the universal loan simplify the social welfare system, it also removed certain disability premiums that were offered in accordance with the inherited benefits.
The users who were most affected were difficult to disable individuals who had previously received a heavy disability premium (SDP). Most of them lost hundreds of pounds a month, which led to financial difficulties.
The universal credit compensation scheme follows two high court judgments between 2018 and 2019. The High Court ruled for the benefit of the user suffering, stating that they should not face financial losses as they move into a new system.
The government was also forced to introduce transitional payments, but many were still excluded. Now DWP is a universal credit fee designed to correct these errors.
Who meets the DWP universal credit fee?
DWP has discovered that DWP universal credit fee will be provided by those applicants who have lost severe disability premiums (SDP) while their transition to a universal loan.
In February 2025, Neil Couling, a higher responsible owner of the Universal Credit, DWP, stated that interested individuals must receive or have received a universal loan including the SDP element as well as the transitional amount. They also need to meet one of the three conditions before moving to a universal loan.
The first condition is acceptable to the inherited benefit based on income containing improved disabled premium. Another condition is that the applicants have the right to inherited benefits that included a disabled premium.
The third and last condition is qualified for the inherited fee based on income with the premium of children with disabilities and tax loans for children with a child’s disabled element (a group that was not disabled).
What will you get from the universal credit compensation of DWP?
The exact amount of compensation depends on how much the eligible individual has lost and how long it has been hit. Monthly compensation amounts are
Improved premium with disability:
- For singles: £ 84 per month
- For couples: £ 120 per month
Disabled Premium:
- For singles: £ 172 per month
- For couples: £ 246 per month
Children’s Premium with Disabled:
- For each child who qualifies: £ 177 per month
DWP also announced that thousands of applicants can get a maximum of £ 5,000, depending on how long they have been affected.
How to distribute universal credit compensation of DWP?
The distribution of universal credit compensation DWP depends on when the applicants moved to the Universal Credit and whether they are today. Neil Couling has defined three different groups with different payment distribution deadlines.
- The first group includes those who had additional transitional SDP elements from 2020.
- The second group includes individuals who received an additional amount between 2018 and 2020, which still receive a universal loan.
- The third group includes those additional payments from 2018 onwards and who do not receive a universal loan
When will you get a DWP universal credit fee?
Each discovered group is facing different time of processing due to different complexities in its cases. The first group contains about 35,000 individuals who can expect to be available in August 2025 in August 2025.
More than 4,000 of these users have already received their compensation amount. Couling emphasized this group as the easiest to process because payment can be automatically made using a digital system.
The second group consists of 15,000 individuals who will be able to receive their fees by the end of March 2025. Mr. Couling said these cases are slightly more complex because they include converting from a hand payment of the SDP to pay a universal credit system.
In addition, DWP is still expecting to distribute all payments to this group by August 2025. However, no deadline containing more than 7000 users has not been announced for the third group.
