State pensioners who are living abroad have been urged to check whether they are entitled to a compensation payout from the Department for Work and Pensions (DWP).
The compensation payments follow a major rule change to the Adult Dependency Increase (ADI) payment. There used to be monthly payments that the benefit department gave to state pensioners who had a financially dependent spouse below the state pension age.
These extra payments on top of the state pension were worth either £41.90 or £70 a week and were designed to help couples where one person had little or no income of their own. New applications for the payments were stopped back in 2010, however, there were still thousands of pensioners who continued to claim the extra cash.
From April 6, 2020, the Adult Dependency Increase payment was scrapped altogether. This meant those claiming the maximum payment, saw an annual drop in income of £3,640. The DWP informed people in the UK and those living abroad claiming the benefit that the payments would be ending and sent letters notifying those affected by the change twice in 2019.
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However, earlier this year, after an investigation, the Parliamentary and Health Service Ombudsman found that the DWP failed to communicate the charge to people living abroad in a “reasonable timeframe” and that this was “maladministration.” The Ombudsman found “no fault” in the way the DWP communicated with those living in Great Britain.
In January, the Ombudsman recommended that the benefits department also provide a “comparable remedy” to anyone who was “adversely affected” by the removal of the payments due to when they were notified of this change.
The number of people living abroad and entitled to ADI is unknown, but in May 2019, a year before ADI ended, the DWP told Parliament that 10,817 people were still getting paid ADI each month.
The DWP has not confirmed the amount of the compensation payments. Although earlier this year, one man who was affected after only being told in 2018 – eight years after the DWP started informing claimants of the change – recived a compensation payout of £675. The Ombudsman said the DWP needed to provide a “comparable remedy” to anyone who approaches them in a similar situation.
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In a recent release, the DWP said you may be entitled to compensation if all of the following criteria apply:
If you believe you meet all of the above criteria you will need to contact the DWP by emailing ministers@dwp.gov.uk, or by calling 0800 731 7898, and provide the following information:
The DWP said: “If you feel you were adversely affected by the removal of an ADI, due to when you received notification after 6 April 2010 that it was going to end, then you may be eligible for compensation. We will review your case and contact you if we need more information. After the review we will write to you to let you know if you are eligible for a compensation payment.”
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