Thousands of people could be due a pay-out from the Department for Work and Pensions (DWP) after their housing benefit was underpaid.
The error saw people given less housing benefit than they were entitled to, after a separate issue relating to underpayment of Employment Support Allowance (ESA) which happened when some claimants were moved over from older benefits. This could include those who moved to ESA from Incapacity Benefit, Severe Disability Allowance or Income Support from 2011 onwards.
ESA is a benefit designed to help those who are ill or disabled and is worth up to £74.70 a week. If you claim ESA, it means you should get the maximum level housing benefit.
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The DWP has identified around 22,500 cases of people who may have received less housing benefit than they were entitled to between 2011 and 2019 due to the ESA error, the Mirror reports. The government says it has already reviewed around 600,000 cases since 2016.
It has made 118,000 arrears payments to those who were identified as having been underpaid ESA, totalling £613million. The money being awarded to affected benefit claimants is what they should have been paid in the first place.
On average ESA claimants are owed £5,000 but some on a severe disability premium could be owed £11,500 each. One woman received almost £20,000 in backpay and also successfully won compensation for the error on top after taking her case to the Ombudsman.
For example, some claimants missed out on premiums like the enhanced disability premium, which is worth up to £24.60 per week. The DWP says it is now working with councils to identify those who could be due underpaid housing benefit as well, and councils will be looking at those potentially affected between now and the end of June.
A DWP Spokesperson said: “As part of the Employment and Support Allowance (ESA) underpayment exercise we informed Local Authorities of any new and past awards of income-related ESA so that Local Authorities can consider the impacts on Housing Benefit and pay any arrears due.”
How to check if you're owed any money
The DWP has been contacting claimants affected by the ESA underpayment error - this means you should have received a letter informing you of the investigation. If you think you could be entitled to pay-out but you haven’t been contacted, you can call the DWP on 0800 169 0346.
The Mirror asked the DWP how much on average those who didn't receive the full amount of housing benefit could be entitled to but there has not yet been a response. The amount you could be due depends on how long you were underpaid.
Housing benefit is given to households who are struggling to pay their rent due to unemployment or low-income. How it is calculated is complicated.
Housing benefit is usually worked out by adding together a "personal allowance" - based on your age and living situation - and any additional "premiums" you could be entitled to. Your income and renting situation is then also taken into account, along with any dependants you live with, to come up with an "applicable amount".
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