OVER 118,000 people with disabilities and health problems have been denied the right to compensation for a blunder over benefit payments, an expert warns.

Parliamentary and Health Service Ombudsman Rob Behrens is calling on the Department for Work and Pensions (DWP) to urgently rectify the issue, something which he said it was refusing to do.

The call comes after an investigation by the ombudsman found that a 62-year-old seriously ill woman had her benefits payments severely cut by around £80 a week due to a government blunder, leaving her unable to heat her home and buy food.

Ms U, who lives alone, should have received her employment and support allowance (ESA) payments in full when she was moved from incapacity benefit, but her payment was cut, like thousands of others.

This had a “devastating impact” on her health as she was recovering from heart bypass surgery and managing multiple health problems — including autoimmune disease, severe mental health problems and hypertension.

She received only around half the amount the government says is the minimum requirement for a person with severe disability needs over five years, meaning she could not afford heating or food.

Her physical health declined drastically and her hair fell out; she lost weight and her mental health deteriorated.

DWP has since corrected the ESA error and set about paying arrears to those affected.

Mr Behrens said: “Ms U’s case is deeply distressing and a stark reminder of why accountability and independent ombudsman schemes matter.

“It is human to make mistakes, but not acting to right wrongs is a matter of policy choice. In this case, that choice has been made by the very organisation responsible for supporting those most in need.

“We don’t know how many more Ms Us there are out there. That is why I urge the DWP to allow people affected to claim for compensation in recognition of its error and the potentially devastating impact it has had on people’s lives.”

Linda Burnip of Disabled People Against Cuts told the Star the campaign group condemned the DWP for “depriving claimants of their rightful social security payments – however sadly it is no surprise that they continue to treat claimants with utter contempt.”

The DWP was approached for comment.