Disabled people describe impact of ‘very unfair’ extra costs caused by DWP’s universal credit migration

Disabled people have described their anger with the Department for Work and Pensions (DWP) for failing to warn them of the significant hidden costs – which can be more than £2,400 a year – of transferring onto universal credit from their old “legacy” benefits.

They have come forward to share how the unexpected hit to their finances caused by moving onto universal credit from employment and support allowance (ESA) has impacted their ability to cope with the cost-of-living crisis.

They are facing extra costs from their local authority as a result of the move, even though DWP has previously insisted that they would – at least initially – be no worse off on universal credit than on their previous benefits once they were forced onto the new system through the “migration” process.

But Disabled People Against Cuts (DPAC) revealed last week that it had been hearing from disabled people who have been hit hard in two different ways by this process.

Some disabled people have seen their care charges to their local council increase, sometimes by more than £50 a week.

Other disabled people are receiving a much lower discount under their local council tax reduction scheme after migrating onto universal credit.

DPAC said this week that disabled people had continued to come forward to describe the extra costs they were facing, which appear to vary across the country.

DPAC is hoping a legal action might be possible, and it is still looking for disabled people who are eligible for legal aid and might be willing to take a legal challenge with DPAC’s support.

It also encouraged those affected to complain to their MPs, and to continue to share their stories with DPAC.

Linda Burnip, DPAC’s co-founder, said: “Many people are losing over £200 a month which is more than £2,400 a year from already meagre social security payments and that has to be wrong.

“DPAC demand DWP explain what it knew and when about this added cost to the migration process.”

This week, disabled people have described to Disability News Service (DNS) the impact of the unexpected costs of migrating to universal credit from ESA.

Mark Catlin, from Hertfordshire, is now having to pay £30 a month in council tax – rather than nothing – after he was moved onto universal credit from ESA in May this year.

He assumed it was a mistake when he received the bill but when he called the council he was told that the council tax reduction for those on ESA was 100 per cent but was just 75 per cent if the same person moved to universal credit.

Catlin told DNS it was “not easy” to cope with the extra monthly cost.

He said he believed DWP did not care about the extra payments, and that most of its advisors were “not even aware of these changes; if they are, they’re not making people aware of them”.

And he said he was “pretty disgusted” with the council.

He said: “I don’t understand how they can justify the reduction change just because the name of the benefit changes, when there’s been no change in financial entitlement, especially with the cost of living being so changeable.”

Another disabled claimant, Lisa, from Plymouth, moved onto universal credit in June.

She told DNS: “I heard all the government statements saying those moving from legacy benefits would have their entitlement protected and income would stay the same.”

But she found out that the change meant her council expected her to pay 40 per cent of council tax charges, rather than the previous level of 20 per cent, which means an extra £41 a month.

Lisa, who has long-term health conditions, said the extra charge was “very unfair”.

She said: “It’s becoming more difficult to cover expenses and costs to just pay bills and food each month.

“It has become clear the DWP and government ministers have wiped their hands of any responsibility of this extra charge, saying it’s up to the individual councils what rates they set their council tax levels at.”

Labour’s Debbie Abrahams, who chairs the Commons work and pensions committee, was not available to comment on the concerns this week.

Meanwhile, DWP has again refused to say if and when it became aware of the issue, whether it was concerned, or if it would take any action.

Last week, it issued the following statement: “We support millions of people through universal credit every year – including those who have moved from ESA – and it’s a top priority for us to ensure that people receive the help they are entitled to.”

A note from the editor:

Please consider making a voluntary financial contribution to support the work of DNS and allow it to continue producing independent, carefully-researched news stories that focus on the lives and rights of disabled people and their user-led organisations.

Please do not contribute if you cannot afford to do so, and please note 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…