Changes to Severe Disability Compensation Payment

The Department for Work and Pensions (DWP) has changed how it pays compensation to people who lost their Severe Disability Premium when they moved over to Universal Credit.

How are Severe Disability Compensation Payments are being made?

The payments were being made as separate payments but now they will be included in people’s Universal Credit payments and will show up on their statements.

Media reports

We have seen some claims in the media and online that this is an extra £400 payment for people getting Universal Credit. This isn’t right. The money is only for a small number of claimants, and it is only a change to how the money is administered. Only people already getting compensation payments are affected and those people won’t be any better off.

Severe Disability Premium and compensation payments

Severe Disability Premium is extra money that is paid on income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Income Support, or Housing Benefit to people who also get Personal Independence Payment (PIP) and who don’t have anyone caring for them.

The Severe Disability Premium does not exist in Universal Credit. At the moment, people who are entitled to Severe Disability Premium cannot claim Universal Credit. If you are entitled to a Severe Disability Premium, you can still make new claims for the benefits Universal Credit replaces.

People who were entitled to a Severe Disability Premium on Income Support, income-related Employment and Support Allowance (ESA), or income-related Jobseeker's Allowance at the time they claimed Universal Credit, are entitled to compensation payments.

See Severe Disability Premium and Universal Credit for more information.

If this affects you, seek advice from an expert benefits adviser. You can use our Find an Adviser tool to find a local one.