The Department for Work and Pensions (DWP) is making headlines again as it prepares to pay out backdated benefits worth up to £12,000 to thousands of claimants across the UK. If you or someone you know has been claiming certain benefits over the past few years, this could be an important update that puts a significant amount of money back into your pocket.
Here’s everything you need to know about who qualifies, why these payments are being made, and what steps you need to take next.
Why is DWP Paying Backdated Benefits?
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This backdated payment stems from errors identified in the way benefits were calculated for people receiving Employment and Support Allowance (ESA). Many claimants who transferred from older benefits like Incapacity Benefit to ESA between 2011 and 2014 were underpaid due to miscalculations in how income-related elements were handled.
The issue was flagged in a government report back in 2017, and since then, the DWP has been slowly working through affected cases to correct the mistake. Now, thousands more people are being contacted and could receive back payments that range from a few hundred pounds to as much as £12,000 – completely tax-free.
Who Might Be Eligible?
You might be eligible for this one-time backdated payment if:
- You moved from Incapacity Benefit, Severe Disability Allowance, or Income Support to ESA between 2011 and 2014
- You were not paid the full income-related ESA amount you were entitled to
- You are currently receiving ESA or have previously received it during that time period
- You haven’t already been contacted or received a correction payment
The DWP has already reviewed over 600,000 cases and says that more checks are still ongoing, especially for people who may have been missed the first time.
How Much Could You Get?
The amount you receive will depend on your personal circumstances, including:
- How long you were underpaid
- What benefits you were previously on
- Your eligibility for premiums like the Enhanced Disability Premium or Severe Disability Premium
According to official figures, the average payout so far is around £5,000, but in some cases, individuals have received up to £12,000 in backdated money.
And here’s the good news: You do not have to repay this money, and it doesn’t affect your future benefits or tax liabilities. It is considered a correction, not a windfall or income gain.
Do You Need to Apply?
In most cases, you don’t need to do anything. The DWP is reviewing cases automatically and will contact you if you are owed money. However, if you think you might be eligible and haven’t been contacted, you can:
- Call the ESA helpline or
- Write to the DWP requesting a case review with your National Insurance number and benefit details.
Make sure your contact information is up-to-date with DWP to avoid missing any important communication.
What Should You Do Next?
Here’s a quick checklist:
- Think back: Were you switched from Incapacity Benefit or similar to ESA between 2011 and 2014?
- Have you received any letters from DWP about past underpayments?
- Keep an eye on your post – eligible claimants will receive a letter or call.
- If you believe you were underpaid and haven’t been contacted, reach out to the DWP to request a review.
You can call the ESA helpline on 0800 169 0310 (Monday to Friday, 8 am to 6 pm).
Final Thoughts
This update is part of DWP’s ongoing efforts to correct past mistakes and ensure that vulnerable people are given what they are rightfully owed. In tough financial times, backdated payments like these can make a big difference to families struggling with the cost of living.
If you or your loved ones may be affected, it’s worth checking in and staying alert for any communication from the DWP. A surprise payment of up to £12,000 could be just around the corner.
