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State Pensioners urged to claim compensation after DWP rule change | Personal Finance | Finance

State pensioners who were living abroad between April 6, 2010 and April 5, 2020, may be entitled to compensation from the Department for Work and Pensions (DWP) following a rule change. The DWP used to pay extra amounts of money to State Pensioners who had a financially dependent spouse below State Pension age in the form of Adult Dependency Increase (ADI) payments.

These were designed to help couples where one person had little or no income of their own, but changes in employment and pensions over the years meant the payments became less relevant. Because of this, ADIs were closed to new applications in 2010 and from April 6, 2020, all payments were abolished entirely after being deemed outdated and less relevant in modern society.

The DWP informed people in Great Britain and those living abroad that ADIs would be ending and sent letters notifying those affected by the change twice in 2019. But the Parliamentary and Health Service Ombudsman found that the DWP failed to communicate this information 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.

As such, the DWP has said that affected claimants living abroad who feel they were “adversely affected” by the removal of an ADI due to when they were notified of this change may now be eligible for compensation.

The DWP says you may be entitled to a compensation if ALL of the following criteria apply:

  • you received an ADI
  • your ADI payments were stopped on April 6 2020
  • you were living outside Great Britain for any period of time from April 6, 2010 to April 6, 2020
  • you are able to say how the timing of the notification about the removal of an ADI had an adverse impact on you

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:

  • your full name
  • your date of birth
  • your National Insurance number
  • the date you moved abroad
  • address(es) you were living at between 6 April 2010 and 6 April 2020
  • information about how you have been negatively affected by the timing of the notification

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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