DWP Issues Warning to PIP Claimants Who May Be Required to Repay Funds

New data reveals that nearly £10 billion in benefit overpayments were made last year, with claimant errors being a significant contributor. The Department for Work and Pensions (DWP), responsible for benefits such as Personal Independence Payment (PIP), State Pension, and others, stresses the importance of keeping them informed about changes in circumstances to avoid overpayments and potential repayment obligations.

Here’s what you need to know about overpayments, how to report changes, and the specific scenarios that could affect your PIP eligibility or payment.

Key Statistics

The 2024 Fraud and Error in the Benefit System report disclosed the following:

• Overpayment Total: £9.7 billion, up from £8.3 billion the previous year.
• PIP Overpayment Ratio: 1 in 100 claims overpaid, with claimant errors accounting for 0.3% of cases.
• Top Cause of PIP Overpayments: Failure to report changes in circumstances, particularly improvements in health conditions.

Changes Report to the DWP

To avoid overpayments and ensure your PIP payments are accurate, it’s crucial to notify the DWP about the following changes:

1. Changes in Daily Living

If you need more or less support or if your condition’s duration changes, inform the DWP. This could affect:

• Eligibility: Whether you still qualify for PIP.
• Payment Amount: Adjustments based on your needs.
• Duration: The length of your entitlement.

2. Leaving the Country

If you plan to leave the country for more than four weeks (even for a holiday), notify the DWP. Provide:

• Departure date.
• Duration of stay.
• Destination and reason for travel.

3. Hospital Stays

If admitted to an NHS hospital, PIP payments stop after 28 days. Exceptions include:

• Privately funded hospital stays, where payments continue.
• Payment commencement delays for those hospitalized when their PIP entitlement begins.

4. Care Home Residency

• The daily living component stops after 28 days in publicly funded care homes, but the mobility component continues.
• Fully self-funded care home residents are not affected.

5. Imprisonment or Legal Custody

PIP payments stop after 28 days of legal custody, regardless of the offense type or outcome. Suspended payments are not refunded.

6. Change of Name or Address

Update the DWP with your new name or address:

• Name changes must be communicated in writing, including:
  • Previous name.
  • New name.
  • Updated bank details (if applicable).
  • Signature.
• Address changes should include the full address, postcode, and move date.

7. Bank Account Changes

Provide the new bank or building society details, including:

• Name and address of the financial institution.
• Account name, number, and sort code.

8. Change of Representative

If your appointee or power of attorney changes, inform the DWP with:

• Name and contact details of the new representative.
• Updated contact details for an existing representative.

9. Change of Doctor

Not obligatory after your claim decision is finalized, but crucial during the application process to ensure accurate assessment. Provide the DWP with the new doctor’s:

• Name.
• Address.
• Contact details.

How to Report Changes

To notify the DWP about any of the above changes, use the following methods:

• PIP Enquiry Line:
  • Call 0800 121 4433 (Monday to Friday, 9 AM to 5 PM).
  • Note: Hours may vary during the festive season.
• Written Communication: For changes like name updates, send a signed letter detailing the change to the DWP.

Consequences

Failing to inform the DWP about changes can lead to:

• Overpayments: Claimants may need to repay amounts incorrectly received.
• Legal Implications: If overpayments are deemed fraudulent, there could be additional penalties.

Keeping your PIP information updated is essential for accurate payments and compliance with DWP guidelines. Regularly reviewing your circumstances and promptly notifying the DWP about changes can help avoid overpayments and potential financial stress.

For more information, consult the PIP online handbook or contact the DWP directly.

FAQs