These PIP claimants could be owed up to £5,000 in back pay

The DWP is mid-way through a review of 632,286 PIP cases and is yet to review 325,867 of these, to ensure people were not underpaid the benefit, following a rule change

Hundreds of thousands of individuals receiving Personal Independence Payments (PIP) could be owed arrears dating back to April 2016, due to a change in the assessment rules for the Daily Living component, specifically regarding the definition of 'social support'. The Department for Work and Pensions (DWP) has released new figures showing that 325,867 reviews have yet to be carried out for claimants who may have been underpaid for this disability benefit.

In July 2019, the Supreme Court issued a judgment following an Upper Tribunal decision that altered how the DWP interprets the term 'social support' for Daily Living activity number nine. The 'MM' judgment pertains to the definition of 'social support' when interacting with others face-to-face and when 'prompting' should be deemed 'social support' in the PIP assessment, as well as how far in advance social support can be provided.

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The DWP anticipates reviewing 632,286 PIP cases during this year's corrections exercise and has already examined 219,080 awards by March 31, paying out a total of £142 million in arrears payments. The DWP stated it will reach out to 279,903 claimants who may have been impacted by the assessment rule change, but anyone who believes they may have been affected is also encouraged to contact the DWP to request a review of their claim.

There's no fixed arrears amount for each claimant as every case is unique, but last year it was estimated that the average payout was around £5,200. However, users of a well-known online benefits advice forum have reported receiving backdated PIP payments ranging from £3,000 to nearly £11,000.

The independent Benefits and Work website has revealed that several members of its online community have been contacted by the DWP - both by phone and post - informing them they are due an arrears payment. One member who previously shared how they had received £5,000 in early March after having their case reviewed and award increased to the enhanced rate, added that they have received a further £5,500 from HM Revenue and Customs (HMRC).

The member previously explained to Benefits and Work how they received a call from a DWP decision maker who "ran through a few questions" with them, asking what plans they made when they were going out and who they used as their support when they did. They added: "She told me there and then that she was going to backdate my claim to 2016 and increase it from standard to enhanced. I have just had just under £5,000 paid into my account today."

The member then posted an update saying that once the money was paid by DWP they called HMRC to let them know about the historical error as they had been working and claiming Tax Credits during that time period.

A member discovered they were entitled to an additional Working Tax Credit following a phone call, resulting in a lump sum payment of £5,500 in arrears. The individual shared on the Benefits and Work forum: "I have just received an additional £5.5k from them (HMRC) meaning in total I've had a back payment of £10.5k. This has changed my life in a way I can't even articulate, I've been able to buy a car for my family, pay off debt and can afford to live day to day without any fear of running out of money."

They added: "Thank you to this group and everyone in it, you'll never know how much you've helped flip my whole life around."

Who might be impacted by the assessment rule change?

The MM judgment can only affect a claimant's assessment for the Daily Living part of the PIP assessment. The DWP is reviewing cases where additional points for Activity 9 ('prompting' or 'social support') may make a material difference to the amount of PIP claimants' are entitled to. Those who may have missed out on the Daily Living component element of PIP, or were awarded the standard rate and may be entitled to the enhanced rate, include claims that will not be reviewed The DWP is not reviewing claims if: How to make a claim.

Those who wish to challenge a decision on the review of their Personal Independence Payment (PIP) claim under the MM judgment can request the Department for Work and Pensions (DWP) to reconsider the decision. This process, known as Mandatory Reconsideration (MR), must be completed before an appeal is lodged with His Majesty's Courts and Tribunals Service (HMCTS).

Comprehensive information about challenging your PIP (and other benefit) decisions can be found on the GOV. UK website.