DWP warns millions of PIP claimants who've seen condition 'improve'

James Rodger

13 June 2024 at 0:28 pm·2-min read

The Department for Work and Pensions has uncovered £90 MILLION in excess Personal Independence Payments (PIP) claims. The DWP has found a staggering amount in excess PIP payments amid its annual fraud and error checks.

It warned in its annual report: "The statistically significant decrease in the total overpayment rate was driven by a statistically significant decrease in Claimant Error overpayment rate to 0.3% in FYE 2024 from 0.8% in FYE 2023.

"The majority of overpayments in FYE 2024 happened because the claimants failed to report an improvement in their needs (Functional Needs). This accounted for £6 in every £10 overpaid. Functional Needs decreased to 0.3% in FYE 2024, compared with 0.9% in FYE 2023. This was a statistically significant decrease and the lowest rate since FYE 2018.

"Functional Needs were the main reason for all Claimant Error overpayments reported in FYE 2024. The rate of cases excluded from the headline overpayment estimates due to a categorisation of Not Reasonably Expected to Know (Not RETK) was 2.0% in FYE 2024, compared to 1.4% in FYE 2023.

"This is where the claimant was incorrectly overpaid, but we would not reasonably expect them to know to report the change. Not RETK cases are all Claimant Error cases with error reason Functional Needs. Further information can be found in the background information document.

"The proportion of Personal Independence Payment claims overpaid in FYE 2024 was 1 in 100 claims, remaining the same as in FYE 2023. These proportions do not include the Not RETK cases." The Personal Independence Payment underpayment rate was 0.4 or £80 million, it added. Underpayments were mainly caused by the department making errors when determining the appropriate award levels (Award Determination).

This error category accounted for 75 per cent of the underpayment rate, the DWP report went on to explain.

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