Thousands of Brits underpaid housing benefit could be set for a payout – are you owed cash?

THOUSANDS of Brits could get backpay after an error means they were underpaid housing benefit for years.

The Department for Work and Pensions (DWP) has identified around 22,500 cases of people who could be affected.

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They may be owed backpay because they were entitled to the highest amount of housing benefit but got less.

These claimants did not get the maximum amount because of a separate underpayment of Employment Support Allowance (ESA).

The DWP has already found around 118,000 people with disabilities and health conditions who had their benefits slashed in error when moving to ESA from legacy incapacity benefits.

ESA is designed to help those who are ill or disabled and is worth up to £74.70 a week.

The Department for Work and Pensions (DWP) discovered a system error in 2016 that meant a raft of claimants were not being paid enough.

It has since corrected the error and so far handed out backpay totalling £613 million to those affected.

The money is what they should have been paid in the first place.

One woman affected got nearly £20k in backpay and also successfully won compensation for the error on top after taking her case to the ombudsman.

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Now a new group of those affected by the ESA error could be owed further backpay.

Being in receipt of ESA means you should get the maximum housing benefit – how much that is depends on your circumstances.

But anyone who didn’t get the correct ESA could have missed out on housing benefit at the highest amount too.

The DWP has told local authorities to look at who could be owed backdated housing benefit payments for the period between 2011 and 2019.

Councils will be looking at those potentially affected between now and the end of June.

This had originally been due to happen in 2020 but was delayed by the coronavirus pandemic.

A DWP Spokesperson said: “As part of the Employment and Support Allowance (ESA) underpayment exercise we informed Local Authorities of any new and past awards of income-related ESA so that Local Authorities can consider the impacts on Housing Benefit and pay any arrears due.”

How to check if you’re affected

Since the blunder was uncovered, the DWP has been contacting claimants affected by the ESA underpayment error.

The most serious cases, including terminally ill claimants, have been prioritised first.

That means you should have been made aware by now whether you’re potentially due cash back.

But you think you’ve been affected by the error but haven’t been told that your case is being looked into, you can contact the DWP on 0800 169 0346 for more information.

The average payout from underpaid ESA in arrears is £5,000.

But some on a severe disability premium could be owed £11,500 each and a “small number” could get around £20,000.

Unfortunately it’s too late for 50,000 claimants who have died to check whether they’re due money back because of the blunder.

Of the 118,000 so far identified as affected by the error, around 22,500 of them could also be owed backpay from housing benefit too.

Councils are looking at who is affected now.

Some claimants affected by the ESA error were getting the maximum amount, so will not be owed money.

Others however were not on the maximum rate, and so are owed the difference between that and the amount they did get at the time.

How much that is depends on your circumstances.

This post first appeared on thesun.co.uk