Universal Credit claimants who get less than they did on earlier 'legacy benefits' could get extra cash after a court case today - but it all rests on a government decision.
The court case found that two people on Universal Credit claimants who get less than they did on earlier benefits were discriminated against.
There are 50,000 people in the same position, and repaying them would cost around £150million, according to the Department for Work and Pensions (DWP) .
But that doesn't automatically mean payouts for claimants affected.
What happened today is that a court ruled two Universal Credit claimants, TP and AR, were discriminated against unlawfully by the DWP when they were moved over from older 'legacy benefits'.
This has been happening since 2012 as more generous benefits have slowly been replaced by the roll-out of the one-size-fits-all Universal Credit system.
What is the background to this underpayment?
Claimants getting Severe Disability Premium (SDP) and Enhanced Disability Premium (EDP) suddenly found they were getting £180 less a month on average when they swapped to Universal Credit in 2016 and 2017.
Two of them, TP and AR, then challenged this in court.
That led to a DWP proposal to give an £80 increase for all those affected.
TP and AR had been offered more than that as a one-off deal with the DWP.
But the pair brought another legal challenge, saying that £80 each wasn't enough for all the other claimants.
The £80 rule was then torn up as the case went back to court.
In 2019, the DWP then came back and offered £120 per claimant, which would have included TP and AR.
TP and AR said that wasn't enough either and brought another legal challenge, which led to today's ruling.
What happens next for underpaid Universal Credit claimants?
That all depends on what the DWP decides to do.
That is because the court can point out something is discriminatory, but cannot order the Government how to act.
The court also cannot set any timeline for any decision the DWP now makes.
One option is that the DWP comes back with an increase to the earlier £120.
While the average claimant is losing £180 a month, the average figure per claimant will vary.
If the DWP does offer more money, that is likely to be a fixed sum, as it has offered before.
That will mean some claimants get less than their actual loss, and some get more.
But another option is that DWP appeals the court decision today. If that happens, it all goes back to court yet again.
A DWP spokesperson said: “We are considering the court’s judgment and will respond in due course.”
Law firm Leigh Day represented TP and AR.
Leigh Day partner Tessa Gregory said: “Whilst we are delighted that the court has once again found in our clients' favour, we do not understand why this matter is still being litigated.
"Following the three previous findings of unlawful discrimination the DWP should have ensured our clients were not losing out on severe and enhanced disability payments following their move from legacy benefits to Universal Credit.
"Our clients hope that this judgment marks the end of the road and that the DWP will stop wasting money on legal fees and get on with protecting the vulnerable.”
