DWP to review 325,000 PIP claims for back payments worth around £5,000 after rule change

A significant number of individuals receiving Personal Independence Payments (PIP) could be entitled to arrears dating back to April 2016, due to a change in the assessment rules for the Daily Living component, specifically regarding the definition of 'social support'. The Department for Work and Pensions (DWP) has released new figures indicating that 325,867 reviews are yet to be carried out for claimants who may have been underpaid this disability benefit.

In July 2019, a Supreme Court ruling followed an Upper Tribunal (UT) decision that altered how the DWP interprets the term 'social support' for Daily Living activity number nine. This 'MM' judgment pertains to the definition of 'social support' when interacting with others face-to-face and when 'prompting' should be deemed 'social support' in the PIP assessment, as well as how far ahead social support can be provided.

The DWP anticipates that it will review 632,286 PIP cases throughout this year's correction exercise. As of March 31, it had already examined 219,080 awards, resulting in a total of £142 million in arrears payments.

The DWP has stated it will reach out to 279,903 claimants who may have been impacted by the assessment rule alteration. However, anyone who believes they may have been affected is also encouraged to contact the DWP to request a review of their claim.

There is no fixed arrears amount per claimant since each case varies, but it was calculated last year that the average payout was about £5,200. Nevertheless, users in a well-known online benefits advice forum have conveyed receiving backdated PIP payments ranging from £3,000 to nearly £11,000, reports the Daily Record.

The Benefits and Work website, an independent source, has reported that members of its forum have been informed by the DWP through phone calls and letters that they are entitled to arrears payments.

A particular individual who earlier disclosed receiving £5,000 early in March after having their review completed and their award increased to the enhanced rate, mentioned they had gotten an additional £5,500 from HM Revenue and Customs (HMRC).

That claimant recounted to Benefits and Work how a DWP decision maker rang them up and "ran through a few questions" concerning their preparation for outings and support network during these activities. They revealed: "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."

Subsequently, this member posted an update noting that upon the disbursement of funds by DWP, they contacted HMRC to notify them of the historical oversight as they had been gainfully employed and claiming Tax Credits over that time span.

After a revealing phone call, one member discovered they were due extra Working Tax Credit and subsequently received a £5,500 back payment. Sharing their story on the Benefits and Work forum, the individual expressed profound gratitude: "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."

Expressing thanks to the online community, they added: "Thank you to this group and everyone in it, you'll never know how much you've helped flip my whole life around."

All those who could be affected by assessment rule changes

Updates to assessment regulations could affect certain individuals' Personal Independence Payment (PIP) evaluations, specifically relating to the Daily Living component. The Department for Work and Pensions (DWP) is examining cases where claimants might have earned additional points for 'prompting' or 'social support' under Activity 9, potentially impacting their PIP amount.

Those who could be impacted include people who possibly missed out on the Daily Living part of PIP or were given the standard rate when they might qualify 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 all claims are up for review

The DWP is not reviewing 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

How to make a claim

For those who believe they may be affected, here's how to start a claim:.

Those who want to challenge a decision on the review of their PIP claim under the MM judgment can request the DWP to reconsider the decision - this is known as a Mandatory Reconsideration (MR) and must be done before an appeal is lodged with His Majesty's Courts and Tribunals Service (HMCTS).

Complete information about challenging your PIP (and other benefit) decisions can be found on GOV. UK here.