The DWP confirmed to the Public Accounts Committee (PAC) last week that they will pay the minimum amount they can legally get away with to claimants who were underpaid ESA as a result of DWP errors. This means that they will not backdate all the way to the date of the error in many cases and also will not pay any consequential losses, such as prescription charges claimants should have been exempt from.
In March of this year we reported that the DWP failed to award income-related ESA to around 70,000 claimants who were transferred from incapacity benefit to contribution-based ESA from 2011 onwards.
Affected claimants are owed between £2,500 and £20,000 each.
However, the DWP are insisting that they are only legally obliged to repay underpayments from 21 October 2014, when the upper tribunal first ruled that contribution-based and income-based ESA are…
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