Around 70,000 people have been underpaid Employment and Support Allowance after transferring from older benefits, including Incapacity Benefit.
The people most affected are approximately the 20,000 who were entitled to the ‘severe disability premium’ and were not paid it. In some cases, people might be owed up to £20,000.
The DWP is now making backdated payments to affected customers. Payments will be made going back to the date of the original claim.
If you think you might be owed compensation, you don’t need to do anything - DWP will contact you.
If you're getting means tested benefits, any arrears of benefit you're owed under £5,000 are disregarded as capital for 52 weeks from the date they are paid.
If your payment is £5,000 or more, it will be disregarded for 52 weeks or until your benefit award ends, whichever is longer.
These rules also apply if you move onto Universal Credit (UC) and are owed arrears relating to legacy income-related benefit entitlement.