DWP to review over 300,000 PIP claims for £5,000 in back payments after rule change
The Department for Work and Pensions (DWP) are in the process of reviewing a large number of Personal Independence Payment (PIP) claims, as a change in the assessment rules could mean that many people are entitled to arrears
by Kieran Isgin, Linda Howard · ChronicleLiveA considerable number of Personal Independence Payments (PIP) recipients could be due arrears dating back to April 2016, following a change in the assessment rules for the Daily Living component, specifically around the definition of 'social support'. The Department for Work and Pensions (DWP) has unveiled new figures showing that 325,867 reviews are still pending for claimants who may have been underpaid this disability benefit.
In July 2019, a Supreme Court ruling followed an Upper Tribunal (UT) decision that changed how the DWP interprets the term 'social support' for Daily Living activity number nine. This 'MM' judgment relates to the definition of 'social support' when interacting with others face-to-face and when 'prompting' should be considered 'social support' in the PIP assessment, as well as how far in advance social support can be provided.
The DWP expects to review 632,286 PIP cases throughout this year's correction exercise. As of March 31, it had already scrutinised 219,080 awards, resulting in a total of £142 million in arrears payments.
The DWP has announced it will contact 279,903 claimants who may have been affected by the assessment rule change. However, anyone who believes they may have been impacted is also urged to get in touch with the DWP to request a review of their claim.
While the exact amount of arrears per claimant varies, it was assessed last year that the average payout was around £5,200. That said, users on a popular online benefits advice forum have reported receiving backdated PIP payments spanning from £3,000 up to almost £11,000, according to the Daily Record, reports the Manchester Evening News.
An independent authority, the Benefits and Work website, has indicated that its forum members have been apprised by the DWP through calls and letters about their eligibility for arrears payments.
One individual, who earlier announced a £5,000 receipt in early March following the review and enhancement of their award rate, subsequently disclosed an additional £5,500 had come from HM Revenue and Customs (HMRC).
This claimant shared their experience with Benefits and Work, detailing how a DWP decision maker contacted them to "ran through a few questions" related to their ability to prepare for journeys and the support they required. They said: "She told me there and then that she was going to back date my claim to 2016 and increase it from standard to enhanced. I have just had just under £5,000 paid into my account today."
Later, this individual provided an update explaining that after the DWP payment, they informed HMRC about the past mistake, particularly as they had been working and claiming Tax Credits during that period.
After an enlightening conversation, one individual found out they were owed more Working Tax Credit and subsequently received a back payment of £5,500. Sharing the experience on the Benefits and Work forum, the member stated: "I have just received an additional £5.5k from them (HMRC) meaning in total I've had a back payment of £10.5k.This has changed my life in a way I can't even articulate, I've been able to buy a car for my family, pay off debt and can afford to live day to day without any fear of running out of money."
In a show of gratitude to the digital community, they said: "Thank you to this group and everyone in it, you'll never know how much you've helped flip my whole life around."
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Those who might be affected by changes in assessment procedures
Changes in assessment protocols could potentially alter the scores for certain individuals' PIP reviews, particularly around the Daily Living component. The DWP is reassessing certain instances where subjects may have been under-awarded points for 'prompting' or 'social support' in Activity 9, a move that could affect their PIP entitlement.
Individuals potentially affected involve those who might have missed out on the Daily Living portion of the PIP or received the standard rate despite potentially qualifying for the enhanced rate:
- People who have regular meetings with a mental health professional, without which they would not be able to manage face to face encounters.
- People who need the input of particular friends or relatives with experience of supporting them in social situations - rather than just any well-meaning friend or relative - to help them manage face to face encounters.
Not every case will be reconsidered
The DWP has stated that it will not reconsider claims if:
- the enhanced rate of the daily living part of PIP has been awarded continuously since April 6, 2016
- a Tribunal made a decision on a claim since April 6, 2016
- a decision not to award PIP was made before April 6, 2016
Guidelines on how to lodge a claim
For those who suspect they may be impacted, here are the guidelines to initiate a claim:
Those wishing to contest a decision regarding their PIP claim review under the MM judgment can ask the DWP to re-evaluate the decision - this process is referred to as a Mandatory Reconsideration (MR) and must be initiated prior to lodging an appeal with His Majesty's Courts and Tribunals Service (HMCTS).
Full details on how to challenge your PIP (and other benefit) decisions can be found on the GOV. UK website here.
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