DWP error affecting ESA claimants and LCWRA payments

A recent error by the Department for Work and Pensions (DWP) has left hundreds of households financially affected, specifically those moving from Employment and Support Allowance (ESA) to Universal Credit. This DWP error means some ESA claimants are at risk of losing payments worth up to £416 per month, leaving many out of pocket.

DWP error explained

The issue impacts a small number of ESA claimants transitioning to Universal Credit as part of the “Managed Migration” process. Under this scheme, those on ESA do not need to submit new sick notes to the DWP during the migration, and members of the ESA support group should remain exempt from any work-related activities. Their existing Work Capability Assessment outcomes should automatically carry over when they migrate to Universal Credit. However, some claimants have been incorrectly instructed by DWP staff to provide fit notes or agree to new work commitments before they could move to Universal Credit.

What is managed migration?

The DWP is in the process of moving around two million claimants of older legacy benefits, including ESA, to Universal Credit. This process, called “Managed Migration,” is expected to be completed by March 2025. As part of this transition, those receiving legacy benefits are sent a “Migration Notice” by post, explaining how to apply for Universal Credit. Once a Migration Notice is received, the claimant has three months to apply. Failing to apply within this timeframe could result in their benefits being stopped.

ESA is a benefit for people who cannot work due to illness or disability. Under the Managed Migration scheme, ESA claimants should not have to submit new sick notes or agree to work-related requirements during their transition to Universal Credit. Unfortunately, some individuals have been misinformed, leading to concerns about the potential loss of their limited capability for work and work-related activity (LCWRA) payments, worth up to £416 a month.

This DWP error means some ESA claimants are at risk of losing payments worth up to £416 per month (Image credit) DWP acknowledges the issue

A DWP spokesperson acknowledged the error, stating, “We are aware of an issue where a small number of claimants are still being asked to attend a Claimant Commitment appointment and are currently working to resolve the situation. Anyone who thinks they have been affected should contact their work coach.”

Concerns raised by campaigners

The DWP error has raised significant concerns among advocacy groups and charities. Ayla Ozmen, director of policy and campaigns at the anti-poverty charity Z2K, called the situation “concerning,” highlighting that it puts disabled people at risk of being inappropriately sanctioned. “Not only is this unlawful, but it puts disabled people at risk of being inappropriately sanctioned,” she said.

The Managed Migration process involves moving claimants from six older benefits, commonly referred to as legacy benefits. These include Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related ESA, and Housing Benefit. While the Personal Independence Payment (PIP) is not affected by these changes, many claimants receive both ESA and PIP, and they need to stay informed about these changes.

What went wrong?

The error lies in DWP staff incorrectly advising claimants about the migration requirements. Some were told they needed to submit new fit notes or agree to work commitments, which contradicts official DWP policy. According to the rules, ESA claimants should automatically retain their Work Capability Assessment status, meaning they should not have to provide additional medical proof or agree to work-related activities to qualify for LCWRA payments.

The DWP error has resulted in incorrect information being given (Image credit) What are LCWRA payments?

Limited Capability for Work and Work-Related Activity (LCWRA) payments are provided to those who are assessed as unable to work due to health reasons. Under ESA, claimants may receive an additional component alongside their standard benefit, and this is being replaced by LCWRA payments under Universal Credit. These payments can be as much as £416 a month, which makes them crucial for many claimants relying on support due to illness or disability.

• What should I do if I’ve been asked to provide a fit note or agree to work commitments? If you’ve been incorrectly asked to provide a fit note or agree to work requirements, contact your work coach immediately. The DWP spokesperson advised affected claimants to get in touch to resolve the issue.
• Will I lose my LCWRA payments if I don’t submit a fit note? No, you should not lose your LCWRA payments for failing to submit a fit note. The DWP error has resulted in incorrect information being given, and ESA claimants should not be required to submit new medical evidence during the migration process.
• What happens if I miss the three-month deadline to apply for Universal Credit? If you fail to apply for Universal Credit within three months of receiving your Migration Notice, your benefits may be stopped. It is important to act promptly once you receive your notice to avoid any disruption to your payments.
• Who can I contact if I think I’m affected by the DWP error? If you believe you have been affected by this error, contact your work coach or the DWP as soon as possible. You can also reach out to advocacy groups such as Z2K for additional support and advice.

What claimants need to know

The Managed Migration to Universal Credit is not an automatic process, and households must apply within three months of receiving their Migration Notice. It is crucial for claimants to be aware of their rights during this process to avoid any potential loss of benefits. Those in the ESA support group should have their Work Capability status carried over automatically, without the need for additional documentation or new work commitments.

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Incidents like the DWP error can have serious financial implications for vulnerable individuals relying on these benefits for their daily living needs. The DWP has acknowledged the issue and is working to resolve it, but claimants need to stay informed and proactive to ensure their payments continue without interruption.

The transition from ESA to Universal Credit is a major change for many households, and errors in the migration process can result in unnecessary stress and financial hardship. Claimants are encouraged to follow the guidance provided in their Migration Notice, contact their work coach if they encounter issues, and seek support from advocacy groups if needed.

Featured image credit: wal_172619/Pixabay