DWP PIP payment warning over changes of circumstances advice

Brits are being warned that they could lose out on a significant amount of cash if they don't report changes in circumstances to the Department for Work and Pensions (DWP).

The latest figures in the 2024 Fraud and Error in the Benefit System report show that benefit overpayments in the last year amounted to £9.7 billion (3.7%), an increase from the previous year's figure of £8.3bn.

The Personal Independence Payment (PIP), launched in 2013, is designed to help those with extra costs due to long-term illness, disability or mental or physical health conditions. Last year, PIP expenditure hit £21.6bn, a significant rise from £17.7bn in 2022/23.

This number is expected to grow as the number of people receiving up to £737.20 each month has reached a record-breaking high of 3.6m. However, while overpayments fell from £200 million in 2022/23 to £90m last year, this could result in claimants having to repay the DWP.

The DWP attributed the main cause of PIP overpayments to claimant error (0.3%), where an individual failed to report a change in their circumstances, specifically an improvement in their condition. The report suggests that the proportion of PIP claims overpaid last year was one in 100, the same rate as the previous year, accounting for £6 in every £10 overpaid, according to the Daily Record.

How to report a change in circumstances

To report a change of circumstances, you can contact the PIP enquiry line on 0800 121 4433. The lines are open from 9am to 5pm, Monday to Friday.

However, it's important to note that opening hours may vary during the festive fortnight. Here's a comprehensive guide to all the changes in circumstances and whether you need to inform the DWP about them.

Changes to daily living or mobility needs

If there are changes to your daily living or mobility needs, for instance, if you require more or less assistance or if your condition is expected to last longer or shorter than previously reported to the DWP, you should inform them. This could affect your PIP entitlement, the amount, and the duration of the PIP award.

Leaving the country or planning to leave the country for a period of more than four weeks - even if this is a holiday

If you're leaving the country or planning to leave for more than four weeks - even for a holiday - this could impact your PIP entitlement. The DWP needs to know your departure date, how long you plan to be away, which country you're visiting, and the reason for your trip.

Stays in hospital or similar institutions

If you're staying in a hospital or similar institution, both components of PIP stop being payable 28 days after admission to an NHS hospital, according to DWP guidelines. Privately funded patients are not affected by these rules and can continue receiving either component of PIP.

If you're in a hospital or similar institution when your PIP entitlement begins, PIP is not payable until you're discharged. The same applies to care homes.

Care homes

The daily living component of the Personal Independence Payment (PIP) ceases to be payable after 28 days of residency in a care home where the costs of the accommodation are met from public or local funds. However, the PIP mobility component can continue to be paid.

Those who fully self-fund their placement are unaffected by these rules. If a claimant is in a care home at the date of entitlement, the PIP daily living component is not payable until they leave.

Linked spells in hospital and a care home

Spells in hospital are linked if the gap between them is no more than 28 days. The daily living component for spells in a care home is also linked if the gap between them is no more than 28 days.

There is no link for the mobility component because payment is not affected when in a care home. Both components of PIP will stop being paid after a total of 28 days in hospital.

The daily living component of PIP will stop being paid after a total of 28 days in a care home. If a claimant moves between a hospital and care home, or vice versa, these periods will also link.

Imprisonment or claimant held in legal custody

This change may affect the amount of PIP that can be paid to the claimant if they are imprisoned or held in legal custody.

The Department for Work and Pensions (DWP) needs to know the date the claimant was taken into prison or legal custody and the length of time they are expected to be there, if known.

PIP payments are stopped after 28 days if a person is taken into legal custody, regardless of whether the offence is civil or criminal, and irrespective of conviction or remand status. Benefits that have been suspended are not refunded, no matter the outcome of the case.

Two or more separate periods in legal custody link if they occur within a year of each other. A change of name will not affect PIP payment or eligibility, but it's vital that the DWP has the most up-to-date details for the claimant.

Change of name

This change must be reported in writing - if the claimant phones to provide these details, the DWP will ask for written confirmation. The written notification should include: full details of their previous name, their new name, any changes made to the bank or building society account into which PIP is paid, such as the account name or number, and their signature on the letter.

Change of account PIP is paid into

If there's a change in the account where PIP is paid, the DWP needs complete details of the new bank or building society, including the name and address, along with details of the new account, including the account name, number, and sort code or roll number.

Change of person acting for the claimant

The term 'change of person acting for the claimant' refers to an appointee or someone with power of attorney for the claimant.

This change is crucial to ensure the DWP can make payments accurately and on time. They require the complete name, address, and contact information of the new representative for the claimant.

Change of address

If the claimant has moved or changed their contact details, it's crucial that the Department for Work and Pensions (DWP) is informed. A change of address, unless it's to a hospital or nursing home, won't affect eligibility or Personal Independence Payment (PIP).

The DWP needs up-to-date information about the new address, including the postcode and moving date.

Change of doctor or healthcare professional

Changing your doctor or healthcare professional won't impact PIP payment or eligibility once a decision on the PIP claim has been made.

However, if this change happens during the claiming process, it's vital the DWP is updated with the most recent information. This ensures the assessment provider can collect any additional details they may need.

The DWP requires the full name, address, and contact details of the new doctor or healthcare professional. More information about changes of circumstance for those receiving PIP can be found here.