PIP Claimants May Have to Repay DWP Due to Overpayment Error
The Department for Work and Pensions (DWP) offers State Pension and welfare benefits to approximately 22.7 million people throughout Great Britain. According to the 2024 Fraud and Error in the Benefit System report, benefit overpayments amounted to £9.7 billion (3.7%) in the past year, up from £8.3 billion in the prior year.
Introduced in 2013, the Personal Independence Payment (PIP) aids individuals with extra expenses caused by long-term illness, disability, or physical and mental health conditions. Recent data shows a total expenditure of around £21.6 billion on PIP in the previous year, a significant increase from £17.7 billion in 2022/23. The number of beneficiaries receiving up to £737.20 monthly has surged to a record 3.5 million. Despite a drop in overpayments from £200 million to £90 million, claimants might be required to refund money to the DWP.
The main cause of PIP overpayments was attributed to claimant error (0.3%), where individuals failed to report changes in their circumstances, particularly improvements in their condition.
It was reported that one in 100 PIP claims was overpaid, amounting to £6 out of every £10 overpaid. Claimants should promptly report any changes in circumstances to the DWP. Guided by the report, claimants need to inform the DWP of changes like:
- Leaving or planning to leave the country for over four weeks
- Hospital stays or admission to similar institutions
- Residency in care homes
- Imprisonment or being held in legal custody
To report a change of circumstances, dial the PIP enquiry line at 0800 121 4433, open Monday to Friday from 9 am to 5 pm. The DWP should be informed of any alterations to daily living or mobility needs, leaving the country, hospital stays, residence in care homes, imprisonment, change of name, account, person acting on behalf of the claimant, address, or healthcare professional.
Claimants should ensure the DWP has the most recent and accurate details to avoid overpayments and potential repayments. Stay updated with our newsletters for more money-saving tips.