Benefits error leads to call for compensation

The Government should allow more than 100,000 disabled and ill people to seek compensation after a "blunder" saw their benefits mistakenly cut, an ombudsman has warned.

At least 118,000 people with disabilities and health problems had their payments wrongly cut when they were moved on to Employment and Support Allowance( ES A) from other benefits, according to the Parliamentary and Health Service Ombudsman (PHSO).

The Department for Work and Pensions (DWP) has since corrected the error and paid arrears totalling £613m but the ombudsman said they are "facing in justice" and should be able to claim compensation in recognition of the "potentially devastating impact".

The DWP said it will be issuing an apology and making an additional special payment as recommended but the PSHO also recommended that the Government reconsider its decision to rule out compensating those affected.

Ombudsman Rob Behrens said: "It is human to make mistakes but not acting to right wrongs is a matter of policy choice. That those affected are unable to claim compensationfor this error is poor public policy in practice, and the situation is made worse given that they have already waited years to receive the benefits to which they are entitled.

“That is why I urge the DWP to allow people affected to claim for compensation in recognition of its error and the potentially devastating impact it has had on people's lives."

A DWP spokesman said: "Our priority is that all people get the financial support to which they are entitled and we have identified those affected by this issue, making 118,000 benefit arrears payments in full."