A report coming out tomorrow shows that since 2011, the Department for Work & Pensions has underpaid an estimated 70,000 people who transferred to Employment and Support Allowance (ESA) from other benefits.
The ‘error’ related to people who may have been entitled to income-related ESA but were instead only awarded contribution-based ESA, and therefore may have missed out on premium payments.
The average underpayment is likely to be around £5,000 but some people will be owed significantly more. A review of a sample of 1,000 cases suggests that 45,000 claimants entitled to the enhanced disability premium only may be owed around £2,500 and that around 20,000 claimants who are entitled to the severe disability premium may be owed around £11,500 each. A small number could be owed around £20,000.
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