Thousands could miss out on benefit payments after blunder

THOUSANDS of people claiming disability benefits could miss out on up to three years of backdated payments, despite the Department for Work and Pensions taking responsibility for the error.

Ministers have confirmed they will pay arrears to thousands of Employment and Support Allowance (ESA) claimants back to October 2014, despite mistakes taking place from 2011. The DWP said a landmark tri- bunal ruling that month fundamentally changed the benefit, and that legally they cannot pay arrears beyond that point.

Labour MP Frank Field joined campaigners in demanding the Government stops playing Scrooge and backdates claims to when any error first took place. But the Tories hit back at Mr Field, saying the relevant legislation was brought in when he was a welfare minister.

The errors by the DWP are estimated to have affected 75,000 people and will reportedly cost up to £500m to put right.

“Why does DWP want to outdo Scrooge at Christmas time?” said Mr Field, chairman of the Work and Pensions select committee. “I’m sure Parliament is not going to let them hide behind the legal shroud they have created on this.”

ESA is the main long-term sickness benefit, paying 2.4 million people between £73.10 and £188 a week.

Work and Pensions Secretary David Gauke said a number of people transferring from older benefits to ESA were incorrectly put on the contributory system rather than the income-based one.

This meant many were not awarded payments they were entitled to, such as the severe disability premium, which is worth £62.45 per week.

Mr Gauke said the errors occurred between 2011 and 2014, after which fresh guidance was put in place.

Philip Connolly, policy manager at Disability Rights UK, said: “The Government’s failure to fully backdate benefits owed to people who are too unwell to work is a bitter pill to swallow. And it’s hypocritical. If this was benefit fraud by claimants, the pursuit by the authorities would be relentless.”