THE Department for Work & Pensions has underpaid an estimated 70,000 people who transferred to Employment and Support Allowance (ESA) from other benefits since 2011, according to a National Audit Office investigation.
The Department estimates it will need to pay between £570 million to £830 million more ESA than it previously expected by the end of the 2022-23 financial year.
The error related to people who may have been entitled to income-related ESA but were instead only awarded contribution-based ESA, and therefore may have missed out on premium payments.
The average underpayment is likely to be around £5,000 but some people will be owed significantly more. It is likely people from Redditch will be among those affected.
Eligible claimants will only be paid arrears as far back as 21 October 2014, the date of a legal tribunal ruling.