Court backs claimants who had benefits cut over ‘errors’

WELFARE CLAIMANTS should not lose out financially when forced to move to Universal Credit because of “errors of law by the state”, the Court of Appeal has ruled.

In a test case over the controversial scheme, three claimants argued they were unlawfully discriminated against when they were left worse off after having to move to the new system because their previous benefits were wrongly stopped.

Patricia Reynolds, who is disabled and lives alone, said she lost £180 a month, while a woman identified only as TD and her severely disabled daughter received £140 less a month for 18 months.

The claimants lost their case at the High Court in March last year, but brought a challenge at the Court of Appeal – where three leading judges overturned the earlier decision yesterday.

Campaigners urged the Government to “act swiftly” to ensure benefit claimants in this situation do not suffer financially, and said the ruling affects “potentially thousands” of people.

Speaking after the ruling, solicitor Carla Clarke, of the Child Poverty Action Group (CPAG), which represented the claimants, said: “Today’s judgment corrects a glaring injustice for the two households in this case, and many others in a similar situation, who end up worse off through no fault of their own.”

The claimants had to apply for UC after the Department for Work and Pensions (DWP) wrongly stopped their benefits in March 2017. Following reviews of their cases, the DWP acknowledged the errors made and the decision to stop their benefits was overturned.

However, they were unable to return to their previous, higher level of welfare support, and were also not eligible to receive “transitional protection” payments – cash top-ups designed to cover shortfalls for people moving on to UC.

Rejecting their case, Mrs Justice May said that, while the claimants were treated differently as a result of the policy, the decision did not “lack consideration so as to render it manifestly without reasonable foundation”.

Universal Credit was created in 2012 as a replacement for various means-tested benefits.