Up to 13,000 benefit claimants could receive compensation payments of up to £5,000 after the Department for Work and Pensions (DWP) settled a major court claim. The settlement follows cases where people lost income after being moved from legacy benefits to Universal Credit.

But the DWP has warned that the amount you earn - and how often you’re paid your wages - can affect your Universal Credit payment. As your wages increase, the amount of Universal Credit you will get will automatically reduce, dropping by 55p for every £1 you earn.

As many as 13,000 benefit claimants could be entitled to thousands of pounds in compensation as the Department for Work and Pensions (DWP) settles a major court claim. Over 200 claimants were awarded between £200 and £3,000 in damages for losing out on income after being moved on to universal credit.

W ork and Pensions Secretary Liz Kendall has hit out at people 'taking the mickey' over benefits. The claim comes in light of a report from the Department of Work and Pensions (DW