The Department for Work and Pensions (DWP) pays benefits to around 23 million people across the UK and has released its latest ‘Fraud and Error in the Benefit System’ report which estimates how much money it incorrectly pays out, either by giving people too much benefit - an overpayment - or not enough - an underpayment.
The DWP explained that overpayments and underpayments happen as a consequence of Fraud, Claimant Error and Official Error - processing errors or delays by DWP, a Local Authority, or Her Majesty’s Revenue and Customs (HMRC).
One benefit the DWP looked at was P ersonal Independence Payment (PIP) and found an estimated £60 million in underpayments and £130 million in overpayments.
PIP underpayments
DWP explained: “There was a specific change made as a direct result of the coronavirus pandemic with regard to when PIP claims in payment are reviewed.
“Some PIP claims are subject to reviews through an ‘Award Review’ (AR), and the change resulted in claims that were due an AR from April 2020 having their AR paused for four months.
“We therefore investigated the potential impact on Fraud and Error of this easement, by taking the extension to ARs into consideration.”
DWP calculated this estimation by using existing published data on PIP, using numbers of ARs delayed, the length of the pause, and likely changes in the rate of benefit received after the AR.
Commenting on the findings the report states: “We estimated a potential additional underpayment of £60m
“This estimate is within the reported confidence intervals for our main Fraud and Error estimate. Due to this, we can conclude that the impacts are small and do not require adjustments to our estimate.”
To put this figure into wider context, in the financial year ending 2020, the DWP reported total underpayments on PIP of £470m.
DWP adds: “Claimants who had their review paused could have notified DWP of a Change of Circumstances during the period of the pause. For those claimants, there would be no underpayments or overpayments.”
While the underpayments are greatly reduced from the last time it was reviewed in 2020, this means that existing PIP claimants should make sure they have reported any changes in their circumstances which could increase their award for either the daily living or mobility components of the benefit.
Review your PIP award
The DWP can award you the standard rate for both components, the enhanced rate for both, or a combination of standard and enhanced.
This is detailed on your award letter along with information about when your award will be reviewed.
The review involves looking at your claim again to ensure the DWP is paying you the right amount of financial support.
However, there is a way to speed this process up, especially if your circumstances have changed and your condition has worsened, deteriorated, or a new one has developed.
If your condition gets worse, or the level of help or support you need has changed, you should contact the DWP as soon as possible as they may want to look at your PIP claim again.
This is particularly important for claimants whose circumstances may have changed since the pandemic began in March 2020.
It's important to be aware that you will have to complete another form similar ro the 'How your disability affects you', and may be required to attend another medical assessment either in person, over the phone or by video call.
PIP payment rates
Daily living component
If you have daily living needs, you will receive the daily living component.
There are two rates:
- Standard - £61.85 per week
- Enhanced - £92.40 per week
You will be awarded the standard rate if you score between 8 and 11 points for your daily living needs in the PIP 'test'.
You will be awarded the enhanced rate if you score 12 points or more.
If someone cares for you and you receive the daily living component, they might qualify for Carer’s Allowance.
Mobility component
If you have mobility needs, you may qualify for the mobility component.
There are two rates:
- Standard - £24.45 per week
- Enhanced - £64.50 per week
You will be awarded the standard rate if you score between 8 and 11 points for your mobility needs in the PIP 'test'.
You will be awarded the enhanced rate if you score 12 points or more.
How to contact the DWP to report a change
Report a change as soon as possible, you can call or write to the DWP to tell them about the change.
You will need to include these details when you report a change:
your full name
your date of birth
your National Insurance number
the date the change happened or will happen
the thing that has changed
PIP helpline
Someone else can call on your behalf but you need to be with them so that you can give permission for them to speak for you.
Telephone: 0800 121 4433
Textphone: 0800 121 4493
Calls to this number are free from landlines or mobiles and lines are open Monday to Friday 8am to 6pm.
Address to write to
The correct contact address to use is on your original decision letter from the DWP.
Reporting changes on time
Once you know about a change that might affect the amount of PIP you receive, tell the DWP as soon as you can.
The change might increase your payment and you could be missing out on extra money.
Keep a record of the change and when it was reported
It is a good idea to keep a written record of the fact that you’ve reported the change to the DWP. For example, in case the DWP disagrees that a change has been reported.
If you report the change by phone, you can ask the DWP to send you a written record of the call. If you write to report the change, keep a copy of the letter.
If the DWP sends you a review form
You should fill in the form and send it back by the date given on the front page.
The questions in the PIP review form are based on the same everyday tasks and activities that are covered by the PIP claim form - for example, preparing food, mixing with other people and moving around.
You’ll have to describe how you’re now finding each task or activity. Think about what has changed since your last assessment.
What you say on the form will help the DWP understand how things have changed since your last assessment.
You can read more about the DWP Fraud and Error report on the GOV.UK website, here.
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