Arrears of benefit and tax credits or compensation for non-payment of £5,000 or more due to official error or error of law

Arrears of benefit, Tax Credits or compensation for non-payment of £5,000 or more paid due to official error or error of law can be disregarded for the length of the Universal Credit award. The disregard applies to claimants who receive a payment of arrears or compensation:

• whilst in receipt of Universal Credit or
• whilst in receipt of a Legacy benefit and migrate to Universal Credit with a gap of less than a month between awards of benefit

This longer disregard will only be available on a transitional basis and will only apply to payments of arrears or compensation which relate to a period before Legacy benefits are abolished. Once migration to Universal Credit is complete and Legacy benefits are abolished, a standard 12-month disregard will apply to all new benefit arrears and compensation payments whether or not they are due to official error or errors of law.