Hundreds of thousands owed up to £12,000 in backdated PIP payments after major rule change

Hundreds of thousands of underpaid households could be entitled to £12,000 benefit payments following a major Supreme Court ruling.

Around 326,000 Personal Independence Payment (PIP) claimants could be entitled to back pay – and the DWP is urging those who have applied to check their entitlement.

You may be affected if you applied for PIP since 6 April 2016

These households may have been underpaid and the DWP Pensions Administration is currently working to identify them and repay what they are owed.

It comes after a 2019 Supreme Court judgment changed how the DWP defines ‘social support’ in one of the PIP categories assessed, following a ruling by a higher tribunal.

This means that many claimants may not have received the daily living element of PIP even though they were entitled to it.

Others may have received the standard rate, but should actually have received the premium rate.

Dubbed the ‘MM ruling’, the DWP realised that hundreds of thousands of people could now benefit from extra help.

An administrative exercise was launched in 2021, reviewing PIP applications since 6 April 2016, to see whether applicants may be eligible for additional support.

In its latest update, the DWP says it has identified around 632,286 PIP cases that require a comprehensive review.

Of this total, 219,080 cases have been investigated so far and a total of £142 million has been paid out to those affected, the Mirror reports.

A further 326,000 cases now need to be reviewed and could potentially result in backdated payments of up to £12,000.

A DWP spokesperson said: “We closely monitor the number and reasons for price reviews and carry out regular quality checks to ensure our decision-making is accurate and fair.

“We are committed to making retroactive payments to all claimants affected by this judgment as quickly as possible.

“So, in addition to continuing to consider claims affected by the definition of ‘social support’, we are also testing a more proportionate approach for claimants who may be affected solely by the time element.

“We will invite around 284,000 claimants in this group to contact the department if they believe their claim is affected by this judgment and they have not previously been identified as needing support to engage face-to-face with others because any support they received was anticipated.”

WHAT HAS CHANGED?

The PIP consists of two components: a daily living part if you need help with daily tasks and a mobility part if you need help getting around.

Applicants eligible for each element then receive a standard or enhanced allocation.

When you apply for the benefit, you will receive between zero and eight points for 10 different “activities of daily living.”

People receiving the higher figure are more likely to be awarded the increased payment, which is higher than the standard PIP entitlement.

The standard allowance for the daily living part of PIP is currently worth £68.10 per week and the increased rate is worth £101.75 per week.

One of the activities scored, also known as activity nine, assesses an applicant’s ability to interact with other people face-to-face.

However, the MM judgment found that the DWP had made an error in deciding what points PIP claimants could get for the activity of ‘engaging with other people face to face’ during PIP assessments.

The Sun previously reported on the case of a couple receiving PIP who were “shocked” after being told they were owed £12,000 in back payments.

It is important to note, however, that the DWP will not consider applications if:

• The increased rate of the daily living portion of the PIP has been awarded continuously since April 6, 2016
• A court has ruled on a claim since April 6, 2016
• A decision not to award the PIP was made before 6 April 2016

The exact amount of retrospective PIP payments you may be entitled to will depend on your personal circumstances, but the average payment is around £5,285 per claim.

The DWP has recently prioritised terminally ill and recently deceased claimants in order to test processes and communications with claimants to ensure they are effective “before taking action”.

HOW TO APPEAL A PIP DECISION?

If you think a PIP decision was wrong, you can challenge it.

If you have been contacted by the DWP or believe your PIP payments may be affected by the MM judgment, you should request a ‘mandatory review notice’.

This is where the DWP reviews your decision on your claim.

If you are still not satisfied with the outcome, you can then appeal to an independent tribunal.

You must submit your appeal form within one month of the date indicated on the mandatory review notice.

Please be advised that it usually takes up to six months for an appeal to be heard by the court.

Before the claim goes to court, the DWP may review the original claim.

If you are not satisfied with the court’s decision, you can have the decision set aside, which is called an “annulment”. You will be told how to do this at the appropriate time.

You can also appeal to the High Court (Administrative Appeals Chamber) if you think the court was unable to give you adequate reasons for its decision, or to support its decision with facts, or if it did not apply the law correctly.

You can find full details on challenging your PIP decisions on Gov.UK.

You can get free advice and help to appeal a decision from organisations such as Citizens Advice.