If you’re one of the thousands who lost Severe Disability Premiums (SDP) when switching to Universal Credit, there’s finally some good news.
The Department for Work and Pensions (DWP) is paying compensation—up to £5,000—to about 57,000 people who were financially hit by this change. The best part? You won’t even need to apply. The DWP will contact you automatically.
Background
Let’s rewind a bit. When Universal Credit (UC) replaced older benefits like ESA and Income Support, a lot of people—especially those with severe disabilities—lost out.
One of the biggest losses was the Severe Disability Premium. That meant many disabled claimants saw a sharp drop in their income, sometimes losing hundreds a month.
This led to a legal challenge, and the court agreed it was unfair. So, after years of campaigning, the DWP is finally doing the right thing—offering compensation to make up for the financial damage done.
Eligibility
So, how do you know if you’re one of the lucky (and deserving) 57,000?
You qualify if:
- You moved from legacy benefits to Universal Credit between 2018 and 2020
- You lost out on the Severe Disability Premium or a similar benefit
- You are either still on Universal Credit or were in the past
No paperwork, no applications—if you’re eligible, the DWP will contact you directly.
Payments
The exact amount you’ll receive depends on your situation. It’s all about how much you lost and for how long.
Here’s a quick breakdown:
| Type of Payment | Monthly Loss | Compensation Example (over 18 months) |
|---|---|---|
| Enhanced Disability (Single) | £84 | £1,512 |
| Enhanced Disability (Couple) | £120 | £2,160 |
| Disability Premium (Single) | £172 | £3,096 |
| Disability Premium (Couple) | £246 | £4,428 |
| Disabled Child Premium | £177/child | Varies based on number of children |
Total payouts can go as high as £5,000, depending on how long you were affected.
Timeline
Not all payments are landing at once. The DWP is handling this in phases:
| Group | Approx. Claimants | Payment Timeline |
|---|---|---|
| Current UC Claimants (Post-2020) | 35,000 | By August 2025 |
| Current UC Claimants (2018-2020) | 15,000 | Between March–August 2025 |
| Former UC Claimants | 7,000 | Still under assessment |
If you’re in one of the first two groups, just hang tight. But if you’re in the third group (no longer claiming UC), things might take a bit longer.
Action
Still haven’t heard anything and think you’re eligible? Here’s what you can do:
- Check your records – Did you lose SDP during the UC transition?
- Wait it out – If you fall into the group expecting payments by mid or late 2025, patience might pay.
- Reach out to the DWP – Call 0800 328 5644 or log into your Universal Credit account to send a message.
- Visit your Jobcentre – Speaking to someone in person might help speed things up.
- Seek advice – Talk to Citizens Advice or a benefits specialist if you’re unsure.
This compensation is a long-overdue correction, and it’s a reminder that legal challenges can drive real change. If you think you’re affected, stay informed and proactive. That £5,000 could make a massive difference.
FAQs
Who qualifies for DWP compensation?
Anyone who lost Severe Disability Premiums during the UC switch between 2018–2020.
How much can I get in compensation?
Payments could be up to £5,000 depending on your losses.
Do I need to apply for this payment?
No, DWP will contact eligible claimants automatically.
When will I receive my payment?
Most payments will be made by August 2025.
What if I haven’t been contacted?
Reach out to the DWP if you believe you qualify but haven’t heard anything.
