Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
Business
Levi Winchester

Legacy benefit claimants to appeal decision to exclude them from £1,500 Covid backpay

Two million Brits who claim old-style benefits could see a legal battle against the Department for Work and Pensions (DWP) return to court.

Families were left “devastated” and “heartbroken” last month when the High Court ruled the DWP didn’t break the law when it excluded those on legacy benefits from a £20 weekly payment during the Covid pandemic.

The extra money was worth around £1,500 a year and was available to those who claimed Universal Credit - but not older benefits such as Employment Support Allowance (ESA), Job Seekers Allowance (JSA) and Income Support.

High Court judge Mr Justice Swift admitted legacy benefits were "low" and "it is obvious that any person required to rely only on that level of income will suffer hardship".

But he said the "difference in treatment" between Universal Credit and legacy claimants was "justified" because it was aimed at people who suddenly lost their job due to Covid.

Should everyone have received the payments? Let us know in the comments below

Lawyers representing the claimants called the result "extremely disappointing" and a "devastating blow" to millions of sick and disabled families.

They have now decided to challenge the decision in the courts by lodging an application to appeal the ruling.

William Ford, partner at Osbornes Law, who is representing the legacy benefit claimants, said: “The Claimants in this case hope to be able to challenge the decision of the High Court and we have now submitted an application for permission to appeal to the Court of Appeal.

"This will first be considered by the High Court. If the High Court refuse permission we can seek permission to appeal directly from the Court of Appeal."

The application to appeal the decision could still be turned down by either court - but even if it did go ahead, there is no guarantee of a payout.

This is because the court would not be able to specify how the situation would be rectified, should it overturn the original ruling. It would instead by down to the government to decide.

If the appeal was successful, one remedy could be to issue back payments to those affected, which would be worth up to £1,500 if the DWP matched the level of support those on Universal Credit received during the pandemic.

This includes the 12-month uplift from March 2020 worth £1,040 a year, plus the £500 paid out through the six-month extension announced in the 2021 Budget.

But again, there would be other factors to consider in terms of any award amount given.

For example, if the court overturned its decision, it could find the difference in treatment between those on Universal Credit and legacy benefits was justified for a period of time, but then stopped being justified.

Another option the DWP could decide to do, should the court hear the case again and rule against it, is to just extend the uplift to those on the old benefits system going forward.

The legal challenge had been brought forward by four people who claim legacy benefits, each of which claimed it was unfair that they didn't receive the same uplift as those on Universal Credit.

Universal Credit is slowly replacing legacy benefits but the process will not be complete until 2024 at the earliest – meaning the government is aware of the millions of people still on the previous welfare state.

This includes around 1.9million people who claim ESA, along with those who get Income Support and JSA.

The Mirror has contacted the DWP for comment.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.