DWP Could Owe Thousands to 400,000 PIP Claimants After Potential Underpayments

DWP Could Owe Thousands to 400,000 PIP Claimants After Potential Underpayments

Recent statistics from the Department for Work and Pensions (DWP) indicate that around 11% of the 3.7 million individuals in Britain currently receiving Personal Independence Payment (PIP) could be missing out on financial assistance they deserve. This is largely due to not informing the department of important changes in their circumstances.

Unclaimed PIP Support Surges Over £1 Billion

The 2024/25 Fraud and Error in the Benefit System report has shed light on the severity of unclaimed entitlements in the PIP system—previously referred to as “claimant error.” According to the report, PIP accounted for 30% of all overlooked benefit claims last year, making it one of the most underclaimed welfare payments in the UK.

The total unclaimed PIP amount reached £1.06 billion (4.1%), up from £870 million (4%) the previous year. The DWP attributes this rise to individuals not notifying the department when their health condition worsened or when they required more assistance.

PIP Payment Overview and Eligibility

In the last financial year, PIP spending rose to £25.8 billion, a significant increase from £21.6 billion in 2023/24. This benefit is not awarded based solely on a medical diagnosis but rather on how a disability or health condition affects daily living and mobility.

Weekly PIP payment rates for 2025

ComponentWeekly Rate4-Week Pay Period
Standard Daily Living£73.90£295.60
Enhanced Daily Living£110.40£441.60
Standard Mobility£29.20£116.80
Enhanced Mobility£77.05£308.20

These payments are crucial for those who face additional living costs due to long-term illness, disability, or mental/physical health challenges.

DWP: Changes That Don’t Require Notification

Because PIP is not means-tested, recipients do not need to inform the DWP if any of the following occur:

  • You start a new job
  • You leave a job or are made redundant
  • You retire
  • You change your job role (unless the help you need changes)
  • You stop receiving another benefit

Changes That Must Be Reported to the DWP

However, certain changes must be reported to avoid possible penalties or legal consequences. You should contact the PIP enquiry line if:

  • Your name, address, or GP changes
  • Your health condition improves or worsens
  • You are diagnosed with a terminal illness (life expectancy under six months)
  • You are admitted to a hospital or care facility
  • You leave the UK for more than four weeks
  • You are imprisoned or detained

The GOV.UK site warns: “You could be taken to court or fined if you fail to report a change or provide incorrect information.”

How to Report Changes to the DWP

Before calling, ensure you have the following details ready:

  • National Insurance number
  • Bank account information
  • Your GP’s name and address

Contact Information:

  • Phone: 0800 121 4433 (select option 5)
  • Textphone: 0800 121 4493
  • Relay UK: 18001 then 0800 121 4433
  • Video Relay (BSL): Visit the GOV.UK website to confirm service availability

Conclusion

An estimated 402,500 PIP recipients could be missing out on financial support due to not reporting vital changes in their circumstances. With over £1 billion in unclaimed benefits, it’s essential for claimants to regularly assess their eligibility and report updates to the DWP. Staying informed and proactive can ensure you receive the support you’re entitled to.

Frequently Asked Questions

1. How do I know if I qualify for a higher PIP rate?

You may qualify for a higher rate if your condition has worsened or you need more help with daily activities or mobility. Contact the DWP to reassess your case.

2. Is PIP affected by my income or employment status?

No, PIP is not means-tested. You can receive it regardless of your employment or income status.

3. What happens if I forget to report a change in my health condition?

Failing to report changes may lead to overpayments, underpayments, or even legal action. Always report any significant updates to the DWP.

4. Can I receive PIP while living abroad?

You can only continue receiving PIP if your time abroad is less than four weeks. For longer stays, you must inform the DWP.

5. How quickly will my PIP payments change after reporting a change in circumstances?

Adjustments to your payments typically follow an assessment process. The DWP will inform you of any new payment amount and when it will begin.

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