Millions on DWP benefits could get a £774 boost after court ruling

Autumn Statement: Hunt announces rise in Universal Credit

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

A ruling is expected in the coming weeks or months which could lead to two million benefit claimants getting a £774 bonus payment. The appeal claimed that the Government giving a temporary £20 per week boost for 18 months during the pandemic to people on Universal Credit but not on those on legacy benefits was ‘unlawful discrimination’.

Campaigners claim the system was discriminatory because most people on legacy benefits are sick or disabled.

Their claim was rejected by a High Court judge in February, although the judge said it was “obvious” some would face “severe hardship”.

Now, at the Court of Appeal, campaigners have narrowed down their claim to a smaller range of dates.

With the whole 18-month policy, people on legacy benefits could have won £1,500 in back payments, but with this slimmer appeal asking judges to rule the policy was unlawful in its final nine months from January 8, 2021, back payments could be £774.

The date change was made because the DWP argues it was impossible to raise legacy benefits as fast as Universal Credit due to old computer systems.

While the court accepted that there was discrimination toward disabled people on legacy benefits, the judge ruled that the difference in treatment was justified.

At the time, lawyer Jamie Burton, who led the case, said the decision would “pile misery upon misery for hundreds of thousands of people”.

He said: “This is a national scandal, let it never be ignored again that our social security system is purposely ungenerous to the point of being unfit for purpose.

“Extreme poverty is baked into the system and during the pandemic, it got even worse.”

The DWP had argued that it was impossible to boost legacy benefits at the same time as Universal Credit because of old computer systems.

The DWP’s barrister also said the policy was “clearly lawful”, adding: “Legacy benefit claimants were entitled, and have always been entitled, to claim Universal Credit.

“If they wish to have the advantage of the Universal Credit system, including the payment levels, they can simply claim it.”

The Court of Appeal is expected to give its ruling in the next few weeks or months.

Nearly two million claimants of Employment and Support Allowance, Income Support and income-based Jobseeker’s Allowance would be affected by the ruling.

The DWP doesn’t necessarily have to give everyone the back payments if campaigners win, but campaigners believe it would be likely, at least partially.

There were 5.8 million people on Universal Credit last month with the government planning to move more people over.

The Department for Work and Pensions will be scrapping six legacy benefits by the end of 2024 as the Government moves more people over to Universal Credit.

The payments due to change are Income-based Jobseeker’s Allowance (JSA), Income-related Employment, Housing Benefit, Child and Working Tax Credit, Income Support, and Support Allowance (ESA).

Recipients of certain legacy benefits do not need to wait until they are notified to make the move to Universal Credit, and anyone who thinks they will be better off can immediately make the move.

People are being encouraged to check their entitlement for Universal Credit using an independent benefits calculator as some may not be better off on Universal Credit.

The DWP estimates 1.4 million people will be better off on Universal Credit, while 300,000 will see no change. But 900,000 could be worse off than before.

A DWP spokesperson said: “We are awaiting the decision of the Court. The temporary £20 uplift ensured vital support was given to those facing the most financial disruption during the Covid pandemic.”

Source: Read Full Article