Apply for a one-off payment under the Successful Legacy Appeals Compensation Scheme
Guidance if you received a lower level of benefit after moving to Universal Credit, and this was due to a decision to end your old 'legacy' benefit, which was found to be incorrect.
Applies to England, Scotland and Wales
Background
Six outdated ‘legacy’ benefits are being replaced with a single benefit, Universal Credit. These are Housing Benefit, tax credits (Child Tax Credit and Working Tax Credit), income-related Employment and Support Allowance, income-based Jobseeker’s Allowance and Income Support.
Once someone applies for Universal Credit, their legacy benefits stop, and they cannot move back to them.
Who the scheme is for
In 2020, a Court of Appeal decision concluded that people who had an incorrect decision to end their legacy benefits later reversed, for example on appeal, could not be reinstated onto their legacy benefit if they had already claimed Universal Credit. However, where these same people had a lower level of benefit entitlement on Universal Credit, the court recognised that they had suffered a financial loss.
This scheme aims to compensate those who are part of this group and meet the eligibility requirements.
Who is eligible
You may be eligible for compensation if all the following apply:
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you have proof that you were receiving one or more means-tested legacy benefits, including Housing Benefit, tax credits (Child Tax Credit and Working Tax Credit), income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, or Income Support
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a decision was made to end one of your legacy benefits, ending your entitlement
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because of that decision, you successfully claimed Universal Credit within one month of your legacy benefit ending
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the amount of Universal Credit you were entitled to was less than what you received from your legacy benefit before the move
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you challenged the decision that stopped your benefit, and won, meaning you should have continued receiving your legacy benefit rather than claiming Universal Credit when you did
Only people who meet all these conditions are eligible under the scheme.
What this means for you
If you had to move to Universal Credit because of a decision that was later found to be incorrect, you may be entitled to a one-off payment. This applies if the amount you received from Universal Credit was less than you received from your legacy benefit.
The scheme gives you a lump sum payment similar to what a court might have given you for your loss. The payment is to cover the money you lost because you could not return to your old benefit.
The lump sum is worked out by taking your biggest monthly loss and multiplying it by 12.
How to apply
Fill in the .
You can also write a letter that answers the questions on the form.
Send the application form or letter to:
Freepost
Lowestoft Jobcentre
Post Handling Site B
Wolverhampton
WV99 1NH
RTGC-GJXX-GSKR
If you cannot complete the form, you can also apply by calling us:
Telephone: 0800 158 5557
Welsh language: 0800 328 1744
Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 328 5644
British Sign Language (BSL) video relay service if you’re on a computer - find out how to use the service on mobile or tablet
Monday to Friday, 8am to 6pm
Find out about call charges
What happens next
The Department for Work and Pensions (DWP) will decide whether you should receive a payment under the scheme and may contact you for more information.
They will send you a decision about your application within 6 weeks of receiving it.
Court of Appeal decision
This compensation scheme follows the Court of Appeal decision TD, AD and R v Secretary of State for Work and Pensions [2020] EWCA Civ 618.
It aims to compensate people who had to claim Universal Credit because a decision was made to end their means‑tested legacy benefits (Housing Benefit, tax credits, Employment and Support Allowance, Jobseeker’s Allowance, or Income Support). They received a lower entitlement under Universal Credit. The decision to end their legacy benefits was later reversed but their previous legacy benefits could not be reinstated.