Personal Independence Payment (PIP) is a UK government benefit aimed at supporting individuals with long-term health issues or disabilities. Designed to offset daily living or mobility costs, it plays a key role in ensuring financial stability for those unable to fully support themselves due to health limitations.
Recent findings from the Department for Work and Pensions (DWP) have revealed a widespread underpayment issue, affecting hundreds of thousands of recipients across the country. These missed entitlements are not due to administrative error but result from claimants not reporting a deterioration in their condition or additional support needs.
Over 300,000 claimants underpaid due to unreported changes
According to the DWP’s 2024/25 Fraud and Error in the Benefit System report, approximately 302,500 PIP claimants may not be receiving the full financial assistance for which they qualify. This underpayment is linked to the failure of individuals to notify the department when their conditions worsen or when their need for assistance increases.
The DWP emphasises that PIP eligibility is determined by the impact of a health condition on day-to-day living, rather than the condition itself. As a result, two individuals with the same diagnosis might receive different rates of support, depending on how the condition affects them personally.
Unreported changes are classified under what the department previously labelled “claimant error”, and PIP now ranks second among benefits for rates of unfulfilled eligibility. The total estimated value of these missed payments reached £1.06 billion, representing 4.1% of the PIP expenditure, according to figures shared by the Daily Record.
Potential financial impact of reporting changes in condition
PIP is structured around two components: daily living and mobility. Each can be awarded at a standard or enhanced rate. For 2025/26, the weekly rates are as follows: £73.90 (standard) and £110.40 (enhanced) for daily living; £29.20 (standard) and £77.05 (enhanced) for mobility.
This allows for a maximum combined payment of £187.45 per week, equating to £749.80 every four weeks.
For those currently receiving standard rates only, reporting a change could result in an increase of up to £633 per month, or £7,596 annually, if upgraded to both enhanced components. The DWP advises that claimants should contact the PIP enquiry line on 0800 121 4433 if their condition has worsened or if they require additional support.
