British to Compensate Benefits Errors Claimants
Tens of thousands of people on sickness benefits in the U.K. are set to receive backdated payments of around £5,000 ($6,400) following government errors.
The Department for Work and Pensions (DWP), which is responsible for the British welfare and pension policy, revealed that it is set to pay over £1.5 billion ($1.94 billion) due to the mistakes, which arose mainly between 2011 and 2014. Assessors incorrectly calculated the income of thousands of people during a process that resulted in people moving from incapacity benefit and severe disability allowance onto the Employment and Support Allowance, a separate welfare platform.
Some people have already received compensation up to £10,000 ($12,900), though some individuals are expected to receive compensation up to £20,000 ($25,900).
For the recipients of these checks, the experience is bittersweet. Philip Stanton received his check of £2,250 ($2,900) early in July. While Stanton notes that he is “very grateful to get the money,” he adds that the whole process seems quite arbitrary and negligent. "You think, 'what if they hadn't found out? What else is there?...I have no idea how it was worked out or even if it's the right amount."
The DWP has issued numerous statements in attempts to stabilize the issue and confirm its dedication to resolving the situation efficiently. The DWP “estimate[s] that around 180,000 people could be owed arrears payments, with around 105,000 estimated to be repaid during 2018-19 and 75,000 during 2019-20." Furthermore, one DWP spokesperson said that “anyone affected by this historic error will receive all of the money they are entitled to. That is why we have created a dedicated team of over 400 staff to examine cases, and have paid back around £120 million ($155 million) so far.”
The response to the incident has been swift. Richard Kramer, chief executive of the disability charity Sense, notes that he is glad that the government seems to be "getting to grips" with the problem, adding that it is important to make sure the payments are made as soon as possible. Furthermore, individuals such as Alison Garnham, chief executive of the Child Poverty Action Group, argue that while the errors being uncovered is good news, “it should concern us all that [the DWP] so significantly underestimated the number of people affected.”
Others have aimed to politicize the issue. Marsha de Cordova, Labour’s shadow minister for disabled people, accused the Conservatives of creating a “hostile environment for sick and disabled people.” Cordova further notes that “disabled people have been short-changed and denied the social security they were entitled to,” and that “the government must ensure that disabled people who have been so unfairly treated are properly compensated.”
Frank Field, chairman of the Commons Work and Pensions Committee, who shares a position similar to Kramer’s, noted that "it is welcome news that the government is finally making progress towards repaying people who have missed out on ESA,” while also making clear that “the government must learn lessons from this appalling failure.”
The entire payment process is expected to be completed by the end of 2019.