State Pensioners Eligible for ADI Payment After £41 DWP Rule Change

State pensioners who lost their ADI payments after the £41 rule change may be eligible for compensation. The DWP is inviting eligible claimants to come forward and request a financial review.

State pensioners who experienced financial loss due to the abolition of adult dependency increase (ADI) payments are being urged to apply for compensation from the Department for Work and Pensions (DWP). This follows a recent ruling that revealed significant failures in the department’s communication methods.

The most impacted were individuals living abroad, who faced unexpected financial hardship due to delayed notifications.

According to a report from Birmingham Mail, those who were eligible for ADI payments before they were removed may qualify for a payout, provided they can prove that the delay in notifications caused them financial harm. The DWP is currently reviewing claims on a case-by-case basis.

What Was the Adult Dependency Increase?

The adult dependency increase (ADI) was an additional payment provided to state pensioners who had an adult dependent. The payment amounted to either £41.90 or £70 per week, depending on individual circumstances.

This payment was a crucial financial support for many households, helping to supplement annual incomes significantly.

The ADI payments were terminated on 6 April 2020, leading to some pensioners losing up to £3,640 annually.

Although the DWP sent two letters in 2019 to notify claimants about the upcoming removal, there have been concerns about the timing and adequacy of these communications, especially for claimants living outside of Great Britain.

Findings of Maladministration by the Parliamentary Ombudsman

A report from the Parliamentary and Health Service Ombudsman earlier this year revealed that the DWP failed to notify overseas claimants about the removal of ADI payments within a reasonable timeframe. This failure was classified as “maladministration,” raising serious concerns about the DWP’s communication practices and their effects on pensioners living abroad.

Compensation Eligibility Criteria

Compensation may be available to individuals who meet the following criteria:

  • They were receiving ADI payments that stopped on 6 April 2020.
  • They lived outside Great Britain at any point between 6 April 2010 and 6 April 2020.
  • They can show that delayed notifications financially impacted them.

Eligible individuals are advised to contact the DWP either by email at [email protected] or by calling 0800 731 7898 to begin a review of their case.

In an official statement, 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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