The Department for Work and Pensions (DWP) could owe substantial financial compensation to many claimants, who could receive up to £12,000.
This comes after a review process launched by the Department in 2021 in response to changes to the Personal Independence Payment (PIP) assessment criteria - a benefit specifically designed for people with enduring mental or physical conditions or disabilities.
The Personal Independence Payment (PIP) has two components: the daily living component and the mobility component. Both offer distinctive rates of payment, which are determined by the impact of the person's condition or disability on their daily life.
The daily living component includes help with everyday tasks such as eating, washing and dressing, while the mobility component assesses the person's ability to move around independently.
Previously, claimants were either receiving lower payments or being denied PIP due to an insufficient number of points at assessment.
However, this discrepancy has been rectified by a 2019 court ruling, prompting the DWP to reassess and pay arrears to those affected. Eligible recipients, who are potentially entitled to the two higher rates, could receive up to £184.30 per week.
The tribunal did find fault with the DWP's interpretation of the points awarded for the activity of 'engaging with others face to face' in assessments, specifically in respect of people with particular mental health problems.
Consequently, DWP has been asked to define precisely what constitutes support and to take into account the assistance required by people suffering from mental disorders in social contexts.
Are You Eligible for DWP PIP Back Payments?
According to DWP reports, approximately 79,000 cases were reviewed in the light of the judgement at the end of August. Among these, around 14,000 back payments have already been made, while around 326,000 cases have yet to be reviewed. Updates are expected later this year.
Further to these changes, the DWP has begun investigations into affected cases dating back to 2016, to ascertain whether claimants were entitled to additional support.
However, some claims are exempt from review. These include claims for which the higher rate has been awarded without interruption since 6 April 2016, cases decided by a court after 6 April 2016 and decisions not to award PPI made before that date.
How Much Could You Get?
For each beneficiary, average payments are around £5,300. But individual payments can vary, some higher and some lower, depending on the specifics of each case. For example, a claimant received substantial compensation of £12,000.
The DWP has not confirmed the timetable for payment of the back payments. But, claimants who are entitled to these payments will be contacted by the service.
According to the experience of one claimant, the funds were deposited into his bank account just a few days after he was contacted by the DWP.
The former disabilities minister, Tom Pursglove, stated in October 2023, "We are monitoring the numbers of, and reasons for, revised awards closely and making regular quality checks to ensure our decision-making is accurate and fair. We are confident that reviews are achieving the right outcomes for claimants."
He further added that they expect to complete the review of all cases available to the exercise by the end of 2025.