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Linda Howard & Sam Barker

Around 50,000 Universal Credit claimants could be due share of £150m payout after court ruling

Two severely disabled men have won a legal challenge against the Department for Work and Pensions (DWP) which could result in around 50,000 benefit claimants across the UK on Universal Credit receiving a share of a £150million payout.

On Friday, the High Court in London ruled that the two claimants, known as TP and AR, who lost money moving from legacy benefits on to Universal Credit, were discriminated against by the DWP.

Mirror Online reports that the two men were both receiving an additional £180 each month in their legacy benefits payments before being switched to Universal Credit.

The court said the DWP discriminated against the pair by not giving them the difference when they moved to an area where Universal Credit had been rolled out.

In court, the DWP said paying everyone in the position of TP and AR would affect up to 50,000 people and involve sums of up to £150million over a six-year period to put it right.

TP and AR, who were represented by law firm Leigh Day, began their legal campaign after they were moved onto Universal Credit in 2016 and 2017.

Previously they were both receiving Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP).

Leigh Day said the DWP paid them both £120 each month, compensating for the loss of SDP and not EDP.

Commenting on the outcome of the challenge, claimant TP said: "The past six years have been immensely stressful as I have struggled to get by on a lower income.

"I just hope that the DWP will put all of this right as soon as possible so that those of us who have been badly affected by this unfair policy can get on with our lives.”

Claimant AR said: “It should never have been the case that disabled people entitled to the severe and enhanced disability premiums were suddenly deprived of the equivalent sum when they found themselves transferred on to Universal Credit.

"The policy has caused me and others serious hardship and I am glad that the court has seen the sense in our argument."

Leigh Day said the case of AR and TP is the fourth time a case of Universal Credit claimants on legacy benefits has gone to court.

However, people who may be affected by this outcome should be aware that the DWP is under no obligation to pay out money to further claimants - unless it is challenged in court.

Leigh Day partner Tessa Gregory told Mirror Online : “Whilst we are delighted that the court has once again found in our clients’ favour, we do not understand why this matter is still being litigated.

"Following the three previous findings of unlawful discrimination the DWP should have ensured our clients were not losing out on severe and enhanced disability payments following their move from legacy benefits to Universal Credit.

"Our clients hope that this judgment marks the end of the road and that the DWP will stop wasting money on legal fees and get on with protecting the vulnerable.”

Louise Rubin, head of policy and campaigns at disability equality charity Scope, said: “It’s good to see the court has ruled against this injustice. This is the latest in a series of court cases affecting people who receive disability benefits.

“Disabled people shouldn’t have to fight to get the right benefits.

“Disability premiums aren’t a luxury, they help cover the extra costs disabled people face. They should never have been cut out of the welfare system under Universal Credit.

“With disabled people bearing the brunt of the cost of living squeeze, financial support is needed now more than ever.

“The Government must reintroduce disability premiums under Universal Credit, and provide financial support for those hardest hit by spiralling energy costs and inflation.”

DWP has been approached for comment.

Meanwhile, nearly two million people on legacy benefits are still waiting on a judge to rule on whether the UK Government's decision not to extend the £20 uplift to those on legacy benefits to support them during the coronavirus pandemic was fair.

Benefit claimants on Universal Credit received a £20 weekly increase from the DWP from April 2020 to October 2021 to help them cope with additional costs incurred during the Covid-19 crisis.

However, the uplift was not extended to those on older benefits such as Employment Support Allowance (ESA) and Jobseeker's Allowance (JSA), which campaign groups say disproportionately affected disabled people.

On November 17 and 19, 2021, the High Court heard a judicial review on behalf of four recipients of legacy benefits who contend that the failure to provide them with the £20 weekly uplift given to claimants of Universal Credit constituted “unlawful discrimination.”

At the review in London, the legacy benefit claimants were represented by Jamie Burton QC, leading Desmond Rutledge of Garden Court Chambers, instructed by Osbornes Solicitors.

Doughty Street Chambers issued an update in December due to the number of people making enquiries about the outcome.

It said: “Judgment is awaited in the case.

“It is not unusual that in a case of this type and importance for many hundreds of thousands of people that judgment takes some time.”

The advisory continued: “Chambers acknowledges that many people are anxiously waiting for the outcome and are understandably contacting Jamie [Burton QC] and Chambers for an update.

“Please be assured that as soon as judgment is handed down it will be communicated. In the meantime, please bear with us.”

To keep up to date with these cases join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.

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