The Department for Work and Pensions (DWP) has issued over £660,000 in compensation to more than 300 individuals who were incorrectly denied or delayed in receiving their Personal Independence Payment (Pip). The payments, averaging £2,100 each, were made after the department admitted that its staff had given inaccurate advice to claimants. Many were told they couldn’t apply for Pip unless they had a National Insurance number, which led to them being wrongly turned away or receiving benefits from the wrong date. Pip is a benefit designed to help people with disabilities or health conditions cover extra costs, and it is not based on income.
Since 2013, the DWP has been transitioning people from a previous disability benefit called Disability Living Allowance (DLA) to Pip. However, many of those affected were wrongly informed they were ineligible for Pip, even though they could have applied for the benefit at the same time as applying for a National Insurance number. This meant they were not missing out on the support they were entitled to.
In a recent update, the DWP stated that it is committed to correcting such errors and restoring legal entitlements. It said it had contacted all potentially affected claimants and reviewed their cases. While the review process has been completed, individuals who believe they may have been affected can still request a case review. A spokesperson added that the department has taken proactive steps to ensure fairness for those impacted by the incorrect advice.
Pip, introduced in 2013, has come under increasing scrutiny. Social security minister Stephen Timms is currently reviewing the benefit, with an expected report in the autumn. Early findings from this review suggested that Pip is “not fit for purpose,” hinting at major changes to the system. This review was announced last year after over 100 Labour MPs threatened to oppose government plans to make Pip harder to claim, which would have significantly reduced the welfare budget.
Official data from September showed that the number of people claiming Pip reached a record high of 4.1 million by July. Prime Minister Andy Burnham has expressed his commitment to future welfare reform, but he has emphasized that such changes should not involve harsh cuts that push people into crisis. The government’s approach to welfare, according to a spokesperson, focuses on addressing underlying issues and transforming support systems to help people succeed rather than simply covering failures.
DWP Pays Over £660,000 to Pip Claimants After Admission of Error
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