• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Advice/Information
  • About DNS
  • Subscribe to DNS
  • Advertise with DNS
  • Support DNS
  • Contact DNS

Disability News Service

the country's only news agency specialising in disability issues

  • Home
  • Independent Living
    • Arts, Culture and Sport
    • Crime
    • Education
    • Employment
    • Housing
    • Transport
  • Activism & Campaigning
  • Benefits & Poverty
  • Politics
  • Human Rights
You are here: Home / Benefits and Poverty / McVey’s U-turn means DWP will pay at least £100 million more to disabled claimants
Esther McVey speaking in the House of Commons

McVey’s U-turn means DWP will pay at least £100 million more to disabled claimants

By John Pring on 19th July 2018 Category: Benefits and Poverty

Listen

Disabled people will be paid more than £100 million extra in backdated benefits owed by the government, after a U-turn by work and pensions secretary Esther McVey on the eve of a court hearing.

The Department for Work and Pensions (DWP) had previously only agreed to offer a partial backpayment to an estimated 70,000 disabled people who for years did not receive the correct level of out-of-work disability benefits.

The underpayments were caused by the botched migration of former claimants of incapacity benefit and other benefits to the new employment and support allowance (ESA) from 2011 onwards.

The department failed to realise that many of the claimants were entitled to income-related ESA – and therefore to associated disability premiums – rather than just the contributory form of ESA.

Although DWP had previously agreed to pay back as much as £340 million to those affected – with average payments likely to be about £5,000 – it had said it would only backdate arrears to 21 October 2014, the point at which the upper tribunal ruled that DWP should have assessed claimants for both income-related and contribution-based ESA when deciding their entitlement.

DWP had been refusing to pay back another £100 million to £150 million in arrears that dated from before 21 October 2014.

But yesterday (Wednesday), McVey (pictured) announced that claimants would receive arrears backdated to the date they moved onto ESA, with some claimants now likely to receive up to £10,000 more in arrears.

It is just one in a series of major errors by DWP senior civil servants relating to disability benefits, with the department now believed to be carrying out six separate trawls through the records of disabled people unfairly deprived of benefits.

In a written statement to MPs, McVey said that individuals contacted about their backpayments could expect to receive the “appropriate payment” within 12 weeks after the “relevant information” has been gathered.

Those who have already received arrears payments from 21 October 2014 will have their cases looked at again, with additional arrears paid dating back to the date they were moved onto ESA.

The announcement came as DWP was about to face a court hearing in a judicial review case taken by the Child Poverty Action Group on behalf of a claimant who was underpaid from 2012.

Meg Hillier, chair of the Commons public accounts committee, welcomed McVey’s announcement, which came hours after a report by her committee had attacked DWP’s “culture of indifference”, which saw it take six years to start to address its ESA error.

She said: “I was appalled by the department’s apparent indifference to correcting its mistakes.

“Today’s statement, coming so soon after publication of our report, indicates DWP finally intends to treat this problem with the seriousness it deserves.”

Hillier had said earlier, in publishing her committee’s report, that DWP “simply didn’t listen to what claimants, experts, support organisations and its own staff were saying.

“Its sluggishness in correcting underpayments, years after it accepted responsibility for the error, points to weaknesses at the highest levels of management.

“Indifference has no place in the delivery of vital public services. It must be rooted out wherever it is found.”

 

A note from the editor:

For nine years, Disability News Service has survived largely through the support of a small number of disability organisations – most of them user-led – that have subscribed to its weekly supply of news stories. That support has been incredibly valuable but is no longer enough to keep DNS financially viable.

For this reason, please consider making a voluntary financial contribution to support its work and allow it to continue producing independent, carefully-researched news stories that focus on the lives and rights of disabled people and their organisations.

Please do not contribute if you cannot afford to do so, and please remember that DNS is not a charity. It is run and owned by disabled journalist John Pring, and has been from its launch in April 2009. 

Thank you for anything you can do to support the work of DNS…

 

Share this post:

Share on X (Twitter)Share on FacebookShare on WhatsAppShare on RedditShare on LinkedIn

Tags: Child Poverty Action Group DWP ESA Esther McVey incapacity benefit Meg Hillier public accounts committee

Image of front cover of The Department, showing a crinkled memo with the words ‘Restricted - Policy. The Department. How a Violent Government Bureaucracy Killed Hundreds and Hid the Evidence. John Pring.’ Next to the image is a red box with the following words in white: ‘A very interesting book... a very important contribution to this whole debate’ - Sir Stephen Timms, minister for social security and disability. plutobooks.com and the Pluto Press logo.

Related

DWP silent after Tory member of PIP review publishes report demanding child disability benefits are slashed
8th October 2026
Timms refuses four times to rule out cuts to PIP, but makes firm promise on cash payments
1st October 2026
No decision from Timms on releasing secret reports on deaths, a year after speaking to DWP civil servants
1st October 2026

Primary Sidebar

On the left of the image are multiple heads of different colours - white, aqua, red, light brown, and dark green - all grouped together, then the words ‘Join our campaign for a decent life for Disabled people. Campaign for Disability Justice’
Image of front cover of The Department, showing a crinkled memo with the words 'Restricted - Policy. The Department. How a Violent Government Bureaucracy Killed Hundreds and Hid the Evidence. John Pring.' Next to the image is a red box with the following words in white: 'A very interesting book... a very important contribution to this whole debate' - Sir Stephen Timms, minister for social security and disability. plutobooks.com and the Pluto Press logo.

Access

Latest Stories

Whately appears to agree social security spending is not spiralling after all… as Tories plan £36 billion-a-year cuts

Shadow minister says parents don’t ‘game’ SEND system… but Kemi says disabled adults do ‘game’ the benefits system

Level boarding pledge in government strategy is welcomed, but railways bill amendments are still vital

DWP silent after Tory member of PIP review publishes report demanding child disability benefits are slashed

Access failures at Tory conference leave wheelchair-user suspended in mid-air for more than an hour

Ministers’ decision to slash accessible housing targets was ‘unprincipled’, but Timms says they were right

Greens sideline disabled people at annual conference

National accessibility standards are crucial for addressing transport barriers, Tories hear at conference

Tories discriminate against disabled editor by blocking DNS from receiving key information at conference

Free social care is coming… but only if you’re over 65, government confirms after Burnham speech

Readspeaker
Image of front cover of The Department, showing a crinkled memo with the words 'Restricted - Policy. The Department. How a Violent Government Bureaucracy Killed Hundreds and Hid the Evidence. John Pring.' Next to the image is a red box with the following words in white: 'A very interesting book... a very important contribution to this whole debate' - Sir Stephen Timms, minister for social security and disability. plutobooks.com and the Pluto Press logo.

Footer

The International Standard Serial Number for Disability News Service is: ISSN 2398-8924

  • Accessibility Statement
  • Privacy Policy
  • Site map
  • Bluesky
  • Facebook
  • Instagram
  • LinkedIn
  • Threads
  • Twitter

Copyright © 2026 Disability News Service

Site development by A Bright Clear Web