DWP PIP update as 28,000 overpayments revealed amid bank account check plans

The Department for Work and Pensions (DWP) has provided an update on the review process of Personal Independence Payment (PIP) claims following a question about fraudulent benefit claims. Reform UK MP Rupert Lowe posed a query in Parliament, asking the Government to disclose "what the total number of staff employed to review Personal Independence Payment claims is; and how many fraudulent claims were made in each of the last five years".

In response, pensions minister Sir Stephen Timms revealed that as of November 4, around 2,700 full-time employees are tasked with reviewing PIP claims at the DWP. Turning to the issue of fraudulent claims, Mr Timms referred to a document page which "shows levels of fraud and error in the benefits system, including PIP".

The data suggests that for the financial year ending April 2024, the fraud rate for PIP claims was 0.5 percent due to claimant error, 0.3 percent due to official error, and 0.8 percent for overpayments. Mr Timms clarified that these fraud statistics "only provide an estimate" of the percentage of fraudulent cases, and the total number can be calculated by applying the percentage to the total number of PIP claims.

As per the latest estimates at the end of July 2024, there were 3.5 million PIP claimants. Therefore, using the above percentages, it would mean there were some 17,500 fraudulent claims due to claimant error, 10,500 due to official error, and 28,000 due to overpayments.

PIP provides financial assistance to individuals who have long-term health conditions or disabilities, offering both a daily living and mobility component at varying rates based on the individual's needs.

The current weekly payment rates are:

Daily living part

• Lower rate - £72.65
• Higher rate - £108.55.

Mobility part

• Lower rate - £28.70
• Higher rate - £75.75.

The topic of benefit fraud has been put in the limelight following the announcement that new regulations will empower DWP officials to scrutinise bank accounts when there's suspicion of fraudulent benefit claims. These enhanced powers extend to property searches and asset seizures in cases involving organised criminals exploiting the benefits system.

Financial expert Yiannis Zourmpanos, a senior contributor at Bountii, expressed several reservations about these measures, especially concerning privacy issues. He warned: "The idea that the Government can peer into your bank account feels invasive, and I understand why. From a financial perspective, this kind of oversight raises ethical issues."

However, he acknowledged the delicate nature of the situation, adding: "But remember, it’s also a balancing act. The DWP is trying to ensure that public funds are being properly allocated, and they’re arguing that the level of fraud demands a tougher stance."

Mr Zourmpanos highlighted that innocent claimants may well be fearing "being caught up in this dragnet without cause". He shared one experience: "I’ve had clients before who were questioned about receiving financial help from family members, and while everything was legitimate, it still took time and effort to clear things up."