DWP PIP claimants could be due up to £11,000 in back payments due to rule change

People who claim Personal Independence Payments could be due thousands of pounds following a rule change by the Department for Work and Pensions.

Members of an online benefits advice forum are reporting they have received backdated PIP payments of between £5,000 and nearly £11,000. Around 326,000 PIP cases are due to be reviewed after a change to the definition of ‘social support’, which relates to one of the Daily Living questions on the 'PIP 2 evidence form'.

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. And 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, updated their post to add that they have received a further £5,500 from HM Revenue and Customs (HMRC).

• Read More: List of DWP and HMRC benefits including Universal Credit that will be paid early in August

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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, reports the Daily Record.

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.”

PIP back payments

Tens of thousands of people in receipt of PIP may be due arrears going back as far as April 2016. Around 284,000 existing PIP claimants and those who might have had their claim rejected, are being urged to contact the DWP, if they think they may have been affected.

In July 2019, the Supreme Court handed down a judgment following an Upper Tribunal (UT) decision which changed the way the DWP considers the definition of ‘social support’ for Daily Living activity number nine. The ‘MM’ judgment concerns the definition of ‘social support’ when engaging with other people face to face and when ‘prompting’ should be considered ‘social support’ in the PIP assessment, and how far in advance social support can be provided.

At the end of August 2023, the DWP had reviewed around 79,000 cases against the MM judgment. This includes cases where claimants have previously been assessed as needing ‘prompting’.

Some 14,000 arrears payments, totalling around £74 million have been made. It's important to be aware how much someone receives may be higher or lower for each individual case, but on average, that works out at around £5,285 per PIP claim.

Who may be affected by the assessment rule change

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.

Claims that 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