Thousands could be due over £5,000 backpay after DWP benefit rule change

The Department for Work and Pensions have stated it will review 632,286 case

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Temie Laleye

By Temie Laleye


Published: 25/08/2024

- 14:16

The Department for Work and Pensions (DWP) has stated that it will review 632,286 cases

Thousands of Personal Independence Payments (PIP) claimants are due back payments from as early as April 2016 after a change in benefit rules.

The review comes after a Supreme Court handed down a judgement in 2019 that changed the eligibility requirements for the disability benefit.


Thousands of reviews are yet to be conducted for PIP claimants who could be owed an average of £5,000 each, the latest figures from the DWP show.

The department says it will review 632,286 over the course of the corrections exercise, and had already paid £142million to 219,080 people by March.

More than 320,000 people could be due payouts after this change in benefit rules.

The DWP changed how it considers the definition of ‘social support’ when evaluating the applicants ability to engage with other people face to face.

DWP

Over 320,000 people could be due payouts worth over £5,000

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PIP can help people who have long-term mental or physical health conditions or disabilities. The amount one gets depends on how their condition or disability affects them.

There are two components to the benefit - the Daily Living component and the Mobility Component. Each pays a lower and higher rate.

Those eligible for both higher rates could receive £737.20 a month in PIP payments.

The benefit is rewarded based on a points system, with assessors reviewing how able an applicant is to undertake certain activities.

Generally, if they are less able or need more support to do activities like prepare food or move around, they will be awarded a higher level of payment.

The new rules mean that if someone needs ‘prompting’ – defined as “reminding, encouraging or explaining, from a person trained or experienced in assisting people in social situations” – to engage with other people face to face, they will be classed as needing ‘social support’ and awarded more points than previously.

There is no set amount for payments per claimant as each case is different however, payouts have been recorded as ranging from £5,000 to over £12,000.

The DWP is looking at claims before the guidance was officially implemented in 2020, going as far back as April 2016.

It is also looking at claims where PIP was not awarded to the claimant.

In the benefits department's 2023-24 annual report published in July this year, it estimated that 632,286 PIP cases were going to be reviewed overall.

The accounts report that by the end of March this year, 219,080 cases overall had been reviewed so far and a total of £142million had been paid out to those affected. The DWP noted that it had identified 325,867 cases that required a review.

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The DWP is reviewing cases where additional points for activities “may make a material difference to the amount of PIP claimants’ are entitled to.”

The department said that claimants who think they may be eligible do not need to contact their advisers, and should wait for them to get in touch.

A spokesperson for the DWP added: “It remains our priority to ensure claimants receive the PIP support they are entitled to.

“Reviews are continuing at pace, and we are contacting people who might be affected.”

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