DWP Warning: PIP Claimants Could Lose Payments Before Christmas - What You Need To Know

Some people who claim Personal Independence Payments (PIP) have been given a warning that they will need to take action before Christmas - here's what you need to know.

Those receiving Personal Independence Payments (PIP) have been alerted to necessary action before Christmas, especially affecting individuals who also claim Employment Support Allowance (ESA). Notably, many ESA recipients with disabilities and health conditions are also PIP beneficiaries. However, ESA is set to be phased out and substituted with Universal Credit (UC), prompting a significant shift for claimants.

ESA recipients must proactively apply for UC; the transition is not automatic. During September, migration notice letters were issued to inform claimants of this change. Recipients of these migration notices have a three-month window from the letter's date to secure their UC application. Failure to switch to UC will result in halted payments, reports Birmingham Live.

The dispatch of letters to ESA recipients in September means that any ensuing payment disruptions could coincide with the festive period, underscoring the importance of organising one's finances promptly. Although PIP is exempt from the updates, the fact that many claimants receive both PIP and ESA necessitates attention to these developments. Six legacy benefits are being retired by the DWP, with UC taking their place.

The Government has advised: "Move to Universal Credit if you get a migration notice letter. As one or more of your benefits will be ending soon, you need to move to Universal Credit."

"To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. This is three months from the date the letter was sent out."

ESA to Universal Credit: Key Changes for Claimants

People claiming certain disability benefits could have to take action or risk having their payments stopped before Christmas. Those affected are people who claim Employment Support Allowance (ESA), which was the main disability benefit before Personal Independence Payment (PIP) was introduced back in 2013. The benefit is paid to those who have difficulty working because they're sick or disabled.

In most cases, ESA is claimed alongside others, most commonly PIP. But people claiming both ESA and PIP may need to take action, with ESA set to be axed and replaced by Universal Credit. The Department for Work and Pensions (DWP) is working to move those claiming through its "managed migration" scheme, the Mirror reports, with letters, known as migration notices, having been sent to people who claim ESA since the start of this month. People have been advised to begin applications for Universal Credit.

Impact of the Changes on ESA Claimants

If this is not done within three months, so around Christmas time for most, ESA claims will be closed with payments stopped. It is crucial that those on PIP and ESA are aware of what is happening. Under the managed migration plan, six older benefit, known as "legacy" benefits, will be axed. These include Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.

While PIP is not affected as part of the change, many claimants also get ESA and so need to be aware of what is happening. There are differences between Universal Credit and ESA, and the Benefits and Work forum has highlighted the main ones as being:

What Should PIP Claimants Do?

Individuals claiming certain disability benefits are being urged to take action or they could face the suspension of their payments before Christmas festivities kick in. Those affected predominantly consist of individuals on the Employment Support Allowance (ESA), which was a principal disability benefit until Personal Independence Payments (PIP) were introduced in 2013. ESA supports those with health or disability-related work challenges.

In many instances, recipients of ESA also avail themselves of other benefits, with PIP being a frequent co-claimed assistance. Nevertheless, claimants receiving both PIP and ESA must be vigilant as ESA is due for replacement by Universal Credit. The Department for Work and Pensions (DWP) is orchestrating this transition via its "managed migration" scheme.

From early September, ESA claimants have begun receiving "migration notices" official letters informing them of the need to apply for Universal Credit. Those failing to comply within a three-month time scale will find their ESA support terminated, reports the Mirror. With notifications having begun in September, the impact could severely affect the holiday season. Hence, grasping the changes is essential for beneficiaries.

DWP Reviews: A Potential Threat to PIP Payments

The Department for Work and Pensions is stepping up PIP reviews and can bring people's payments to an abrupt halt. People on PIP could see their payments reduced or stopped as key reasons have been outlined for the changes. The Department for Work and Pensions is ramping up reviews of Personal Independence Payment to ensure claims are correct ahead of social security reforms that are expected to be part of Labour's first Budget at the end of October.

DWP data shows that 3.1 million PIP claims have been reviewed since 2016, including more than 283,000 here in the West Midlands. The figures reveal that of the West Midlands cases, 53,289 people saw their PIP payments stopped and 22,951 were told the amount was being reduced.

PIP is intended to cover extra costs of a disability or long-term health condition and pays up to £737 every four weeks, equivalent to around £9,500 a year. Major changes have been proposed because of "unprecedented" demand for the benefit, with around 70,000 new claims submitted every month.

What to Do If Your PIP Payment is Stopped or Reduced

If your PIP has stopped because your fixed-term award has come to an end, there are two possible courses of action. If you weren't sent a form for your claim to be reviewed but still have medical issues, then you should make a new claim for PIP as soon as possible. If you did have a form and have returned it but didn't get any response, contact the DWP to check they received the form and ask when they'll make a decision.

If you didn't return the review form on time, call the PIP helpline on 0800 121 4433 and ask for more time to complete it and send it back. If the DWP doesn't allow this, you'll need to start a new claim from scratch. You can also challenge the decision to stop your PIP if you believe you have a good reason for not returning your form before the deadline, such as being ill or dealing with an emergency at home.

You would need to ask for this 'mandatory reconsideration' of the decision on your claim within one month but Citizens Advice says it is still worth asking if it's within 13 months of the decision, as long as you can justify your late response.

You can also ask for a mandatory reconsideration if the DWP decides your health has improved and it will be reducing or stopping your PIP payments. If you believe your condition hasn't got better, ask your GP or specialist for a letter to back this up and attach it to your paperwork when explaining why the decision was wrong.

Other Reasons for PIP Payments Being Stopped

Claimants who miss a medical assessment can ask if the DWP will arrange another one. If they agree to arrange a new appointment and then decide you can still get PIP, they will pay you the money you would have got if it hadn't stopped. People are also warned that some changes in circumstances can lead to a PIP claim being abruptly halted. This includes being in a hospital, care home or prison for more than four weeks or going abroad for longer than is allowed.

If your immigration status changes and you become subject to immigration control, your PIP will be stopped. Your partner or child's immigration status can also affect your benefits, the DWP warned. Everybody who has no 'right of abode' (permission to live, work, and access public services in the UK) is subject to immigration control. Even if you have indefinite leave to remain (also known as settled status), this is not permanent and can lapse if you've been outside the UK for a specified period.

If you have settled status, you can spend up to five years in a row outside the UK, the Channel Islands or the Isle of Man without losing your status. If you have pre-settled status, you must normally stay in the UK, the Channel Islands or the Isle of Man for at least six months in every 12 and will lose this status automatically if you spend more than five years in a row outside the UK, the Channel Islands or the Isle of Man. Before May 21, 2024, pre-settled status could lapse after a much shorter period of two years.

Stay Informed About DWP Changes

The DWP is constantly reviewing and updating its benefits system, so it is important to stay informed about any changes. This includes signing up for updates from the DWP, following them on social media, and checking the official website for information. You can also contact the DWP helpline if you have any questions about your benefits.

By staying up-to-date on the latest developments and taking the necessary action, you can help ensure that you continue to receive the benefits you are entitled to.