It'll be worth having a look at the DWP's guide 'A Guide to Financial Redress for Maladministration'. It gives an overview of the 'official' scheme for compensation:
http://www.dwp.gov.uk/publications/dwp/2003/frm/
In my experience, awards for distress tend to be £50, but in a recent case of mine a client was awarded £100 and in another, where the client complained themself, the award was over £200.
Don't forget the the client can always fall back on the Ombudsman who also has the power to award compensation, amongst other remedies.
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