Over 320,000 PIP Claimants Could Be Owed Thousands in Back Payments: Are You One of Them?

Hundreds of thousands of people receiving Personal Independence Payments (PIP) could be owed arrears dating back to April 2016 due to changes in the assessment rules for the Daily Living component. The DWP has disclosed that there are still 325,867 reviews to be conducted for claimants who may have been underpaid for this disability benefit.

In July 2019, a Supreme Court ruling changed how the DWP interprets 'social support' for the Daily Living component of PIP. 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 plans to review 632,286 PIP cases during this year's corrections exercise. As of March 31, it had already reviewed 219,080 awards, resulting in a total payout of £142 million in arrears payments.

Who Could Be Entitled to Back Payments?

The DWP has said it will contact 279,903 claimants who may have been affected by the change in assessment rules. However, anyone who believes they may have been impacted is also encouraged to get in touch with the DWP to request a review of their claim.

How Much Could People Be Owed?

There is no set arrears amount per claimant as each case is different, but last year it was estimated that the average payout was around £5,200. However, members of a popular online benefits advice forum have reported receiving backdated PIP payments ranging from £3,000 to nearly £11,000.

How the DWP Is Reviewing Claims

The independent Benefits and Work website reports that several members of its online community have been contacted by the DWP - by phone and through the post - informing them they are due an arrears payment.

One member who previously shared how they had received £5,000 in early March after having their case reviewed and award increased to the enhanced rate, added that they have received a further £5,500 from HM Revenue and Customs (HMRC).

Real-Life Example: One Claimant's Story

The member previously explained to Benefits and Work how they received a call from a DWP decision maker who “ran through a few questions” with them, asking what plans they made when they were going out and who they used as their support when they did. They added: “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.”

The member then posted an update saying that once the money was paid by DWP they called HMRC to let them know about the historical error as they had been working and claiming Tax Credits during that time period.

As a result of the phone call, the member found out they should have been entitled to additional Working Tax Credit and has now received a lump sum payment of £5,500 in arrears.

The member posted on the Benefits and Work forum: “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.”

Who Might Be Affected by the Ruling?

The MM judgment can only affect a claimant’s assessment for the Daily Living part of the PIP assessment. The DWP is reviewing cases where additional points for Activity 9 (‘prompting’ or ‘social support’) may make a material difference to the amount of PIP claimants’ are entitled to.

People who may have missed out on the Daily Living component element of PIP, or were awarded the standard rate and may be entitled to the enhanced rate, include:

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.

Who Will Not Be Reviewed?

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

What to Do If You Think You Might Be Affected

Claimants who wish to dispute a decision on the review of their PIP claim under the MM judgment can ask DWP to reconsider the decision - this is called a Mandatory Reconsideration (MR) and must be completed before an appeal is made and lodged with His Majesty’s Courts and Tribunals Service (HMCTS).