DWP Sets Final Deadline for Thousands Still Owed Benefits Compensation: If you were receiving disability benefits and moved to Universal Credit (UC), there’s a big chance you were short-changed—and the Department for Work and Pensions (DWP) is finally fixing it. They’ve set a final deadline of September 2025 to compensate tens of thousands of people who lost the Severe Disability Premium (SDP) or other crucial top-ups during the switchover. This is a major issue affecting real lives. Many folks lost out on thousands of pounds—and now the government is playing catch-up. You might be owed money without even knowing it.
DWP Sets Final Deadline for Thousands Still Owed Benefits Compensation
The government has officially drawn a line in the sand: September 2025 is the last date to receive compensation for lost disability premiums during the switch to Universal Credit. With up to £5,000+ on the line, checking your eligibility could be the smartest financial move you make this year. Take control of your benefits. Ask questions, keep records, and don’t assume DWP got it right.
| Details | Info & Stats |
|---|---|
| Topic | DWP sets deadline for missed benefits compensation |
| Deadline for payments | September 2025 |
| Who’s affected | ~57,000 people, mainly those who lost Severe Disability Premium during Universal Credit switch |
| Payments due | Up to £5,000+ based on eligibility |
| Main benefits lost | Severe Disability Premium, Enhanced Disability, Disabled Child Premium |
| Current backlog | 13,000 complex cases remain |
| Where to check | GOV.UK Universal Credit & Compensation |
What Happened and Why It Matters?
In the messy switch from legacy benefits (like ESA, Income Support, Housing Benefit) to Universal Credit, many disabled individuals lost their Severe Disability Premium—through no fault of their own.
The Severe Disability Premium (SDP) was a financial supplement provided to those who were severely disabled and required extra support, helping with day-to-day costs. When Universal Credit rolled out as a single welfare system, it failed to automatically include this premium for thousands of recipients, causing a dramatic reduction in their benefits.
Back in 2018, courts ruled that this mistake violated people’s rights, and compensation had to be paid. But here we are in 2025, and over 13,000 people still haven’t seen a dime.
The good news? The final date to get compensated is now set: September 2025. But you’ve got to make sure you’re on the DWP’s radar.
Real-Life Case Study: John’s Story
John, a 56-year-old from Manchester, was receiving the SDP for years due to a long-term illness. When he was moved to Universal Credit in 2019, he didn’t know his payments had dropped—he just thought “that’s the new system.”
In 2024, he was contacted by DWP and awarded £6,320 in backdated payments. “It was a shock. I’d been struggling all those years, and no one told me I was due anything.”
John’s case isn’t rare. There are thousands of stories like his. People are still out there who don’t realize they are missing the money that’s rightfully theirs. This backlog can have a lasting impact on people’s quality of life, especially for those already dealing with serious health and financial challenges.
Who Is Eligible for DWP Compensation?
You’re probably eligible if the following apply to you:
- You moved from ESA, Income Support, or Housing Benefit to Universal Credit
- You were receiving Severe Disability Premium (SDP) or similar support
- Your Universal Credit started before February 2024
- You didn’t receive transitional protection (a top-up to prevent loss of income)
Even if you’re no longer on Universal Credit, you may still be eligible. The DWP has identified thousands of people who were wrongly excluded, and they’re working to compensate them.
It’s crucial that people verify whether they’re eligible or not. Some may assume they weren’t affected, but many find out years later that they should have received these payments.
Eligibility is determined by:
- The amount of benefits you were receiving before and after the transition.
- The date you transitioned to Universal Credit.
- The presence of certain disability-related benefits at the time, such as the SDP or Enhanced Disability Premium.
How Much Money Could You Receive?
If you’re owed money, it’s not a small change:
| Type of Benefit | Average Monthly Value |
|---|---|
| Severe Disability Premium (SDP) | ~£67.30/week |
| Enhanced Disability Premium | £17.75–£24.60/week |
| Disabled Child Element | Up to £177/month per child |
If you missed £200/month for 24 months, that’s £4,800 back in your pocket—plus potential interest. While it won’t make up for the stress, it can certainly help ease the burden of financial strain.
The total cost to the government is expected to exceed £452 million—meaning the government has a lot of catching up to do.
How to Claim DWP Sets Final Deadline for Thousands Still Owed Benefits Compensation: Step-by-Step Guide
It’s easier than it sounds. Here’s how to get the ball rolling:
Step 1: Review Your Benefit History
Look at old letters, bank statements, or ask DWP for a benefit statement. You should be able to track your previous payments and see if you were affected by the transition.
Step 2: Log into Your UC Account
Check your Universal Credit journal or message section for any compensation notices. If there is a compensation notice, it will usually have instructions on how to proceed.
Step 3: Contact DWP
Not sure or haven’t been contacted? Call DWP directly or visit your local Jobcentre Plus. Bring:
- Benefit award letters
- National Insurance number
- Payment details
- Information on any children or dependents who were affected by lost payments.
Step 4: Document Everything
Keep track of all conversations, letters, and responses. Use a notebook or phone app to stay organized. When it comes to government processes, documentation is key.
Warning Signs You’re Missing Out
Here are some red flags:
- You noticed a sudden drop in payments after switching to UC.
- You were told “you don’t qualify anymore” without explanation.
- You were on ESA with SDP but received no top-up under UC.
If that sounds familiar—you need to act now. The compensation scheme is set to end in 2025, so the window is closing. Time is running out, and missing out on compensation could mean another financial hit for you.
Common Mistakes to Avoid
- Waiting too long — You must act before September 2025. If you miss the deadline, you could lose out on compensation entirely.
- Assuming DWP will contact you — DWP has only reached out to those it has identified as affected, but the system is complex, and many have slipped through the cracks. If you haven’t heard from them, you might still be eligible.
- Not having proof — Always keep your benefit records, letters, and bank statements. If you lose this documentation, it can make claiming more difficult.
Expert Insights & Government Statements
According to a 2024 Parliamentary briefing, over £452 million is expected to be paid to affected claimants. A spokesperson from Disability Rights UK said:
“This is a victory for justice, but people need to be informed. Many still don’t realize they’re eligible. The government needs to do more to ensure everyone is properly compensated.”
Meanwhile, DWP claims they’ve contacted most eligible recipients, but acknowledged a backlog of complex cases remains.
The fact that over 13,000 cases are still pending shows just how slow the system has been in identifying and compensating everyone affected. With the final deadline approaching, it’s vital that people double-check their eligibility as soon as possible.
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