Call for case studies: Successful Legacy Appeals Compensation Scheme

Following the decision in CPAG test case TD and Ors, R (on the application of) Secretary of State for Work and Pensions [2020] EWCA Civ 618, DWP announced in May 2026 the Successful Legacy Appeals Compensation Scheme to compensate individuals in analogous situations. Claimants involved in this decision had their legacy benefit awards incorrectly terminated by DWP and had no option but to claim UC as a result, under which they were worse off. Despite successfully challenging the termination of their legacy awards, these claimants were unable to return to legacy benefits due to having claimed UC and the lobster pot rule.

The scheme will make a one-off payment and eligibility conditions include that the claimant:  

• had a legacy benefit award ended by the DWP; 
• claimed UC within a month of the legacy award ending;
• was worse off on UC; 
• successfully challenged the ending of their legacy benefit.

There may be claimants who satisfy these conditions but for the fact they claimed UC more than a month after their legacy award ended. 

Additionally, the amount of compensation is restricted to a 12 month period, even if the loss sustained was for a longer period. There may be claimants who remain substantially worse off due to DWP’s original error despite being eligible for compensation under the scheme.

We want to hear about any individuals who are ineligible for the scheme due to not having claimed UC within one month of their legacy award ending, or who remain worse off due to the 12 month restriction on the amount of compensation, as well as any other difficulties in claiming and receiving compensation. 

DWP are not doing a trawl for eligible claimants and individuals will need to apply in order to receive payment. We strongly encourage advisers and organisations in the sector to promote this scheme within their networks and among clients.