Over two million people on state benefits could be in line for more than £1,500 in compensation.

At the height of the Covid pandemic and its economic impact, claimants on Universal Credit were given extra money from March 30, 2020, to October 5, 2021.

The standard allowance was raised by £86 a month, first for one year and then for another six months.

The increase, paying about £20 a week on top of the normal amount, meant claimants received an extra £1,560 over that period.

Read more: Team Valley crash: Motorcyclist taken to hospital with critical injuries 

However, those on legacy benefits said the decision not to give them a top-up as well was discriminatory and in breach of the European Convention on Human Rights.

And in February, a High Court judge ruled in favour of the Department for Work and Pensions (DWP), saying its intention of providing support to people who lost their jobs as a result of the pandemic and were forced to claim Universal Credit for the first time was fully justified.

The legal team decided to take the battle further and has now been granted permission for a hearing at the Court of Appeal later this year.

Paul Spencer, policy and campaigns manager at Mind, said: "The UK Government must end this two-tier benefits system, by backdating payments to the hundreds of thousands of people on legacy benefits."

The DWP will have to come up with a package of support if the court appeal is granted in favour of claimants.

The three benefits involved in the court case are:

  • Employment and Support Allowance (ESA)
  • Income Support
  • Jobseeker's Allowance (JSA)

Edward Brown, representing the DWP, said the Universal Credit uplift was "an appropriate and effective response to the emergency facing society in the period since March 2020".

In his written submissions to the original High Court hearing, he said: "Careful consideration has been given to the specific issue, namely whether or not to uplift legacy benefits.

“The reasons why the Government has decided not to uplift legacy benefits are because it would be contrary to the specific fiscal and social policy goals, and it would be inefficient and not capable of delivery via legacy payment systems."

Read next:

If you want to read more great stories, why not subscribe to your Northern Echo for as little as £1.25 a week. Click here