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Up to 75,000 benefit claimants were underpaid for years Up to 75,000 benefit claimants were underpaid for years
(2 months later)
Mistake in payment of employment and support allowance could cost up to £500m to correct
Press Association
Fri 17 Nov 2017 22.57 GMT
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Tens of thousands of disability and sickness benefit claimants may have been underpaid and it could cost up to £500m to correct the error.Tens of thousands of disability and sickness benefit claimants may have been underpaid and it could cost up to £500m to correct the error.
The Department for Work and Pensions confirmed it had identified errors in the payment of employment and support allowance (ESA) that could affect 75,000 people who transferred to it from incapacity benefits.The Department for Work and Pensions confirmed it had identified errors in the payment of employment and support allowance (ESA) that could affect 75,000 people who transferred to it from incapacity benefits.
The errors affected people who applied for ESA between 2011-12 and 2014-15 and were identified by the DWP late last year, according to BBC News, which uncovered the error.The errors affected people who applied for ESA between 2011-12 and 2014-15 and were identified by the DWP late last year, according to BBC News, which uncovered the error.
The department has contacted about 1,000 of the people who could be affected so far, according to the BBC, and has begun making repayments.The department has contacted about 1,000 of the people who could be affected so far, according to the BBC, and has begun making repayments.
Frank Field, the chair of the Commons work and pensions committee, told BBC News: “I’m still gobsmacked at the size and the nature and the extent and the coverage of people that have been wrongly impoverished by the department getting it wrong.”Frank Field, the chair of the Commons work and pensions committee, told BBC News: “I’m still gobsmacked at the size and the nature and the extent and the coverage of people that have been wrongly impoverished by the department getting it wrong.”
A DWP spokesman said: “We’re aware of this issue and are currently reviewing the historical benefit payments of claimants.A DWP spokesman said: “We’re aware of this issue and are currently reviewing the historical benefit payments of claimants.
“We’ve already contacted some of the people affected and are making repayments. Anyone potentially affected will be contacted by the department.”“We’ve already contacted some of the people affected and are making repayments. Anyone potentially affected will be contacted by the department.”
The government is under pressure to reform universal credit, with critics complaining that some claimants have to wait six weeks or more for payments, pushing them into debt and rent arrears.The government is under pressure to reform universal credit, with critics complaining that some claimants have to wait six weeks or more for payments, pushing them into debt and rent arrears.
Benefits
Disability
Universal credit
news
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