People on PIP may have to pay money back after DWP spending review of last year

The Department for Work and Pensions (DWP) pays State Pension and welfare benefits to more than 23 million people across Great Britain. The latest figures published in the 2024 Fraud and Error in the Benefit System report, show that the total number of benefit overpayments during the last year was £9.7 billion (3.7%), an increase on the £8.3bn figure for 2023.

Personal Independence Payment (PIP) was introduced in 2013 and is designed to help people with extra costs incurred due to a long-term illness, disability or mental or physical health condition. The data shows that some £21.6bn was spent on PIP last year, a significant increase on the £17.7bn in 2022/23, and that figure is expected to rise as the number of people receiving up to £737.20 each month has reached a record-breaking high of 3.6m.

READ MORE: New DWP measures to tackle people fraudulently claiming PIP payments of up to £737 each month

READ MORE: New DWP payment update for people on PIP or Universal Credit going into hospital over festive season

However, the figures also show that while overpayments fell from £200 million in 2022/23 to £90m last year, it could result in claimants having to pay money back to the DWP.

The DWP said the main reason for PIP overpayments is due to claimant error (0.3%) where someone has failed to report a change in their circumstances, specifically an improvement in their condition.

The report explains that the proportion of PIP claims overpaid last year was one in 100, the same rate as the previous year. It also said this accounted for £6 in every £10 overpaid.

How to report a change of circumstances to DWP

Contact the PIP enquiry line on 0800 121 4433 to report a change of circumstances - lines are open from 9am to 5pm, Monday to Friday. Just be aware opening hours may change over the festive fortnight.

Here is a comprehensive guide to all the changes in circumstances and whether you need to contact the DWP about them.

Changes to daily living or mobility needs

You should tell DWP if, for example, you need more or less help or support or the condition will last for a longer or shorter time than you previously told DWP about.

This change may affect entitlement to PIP, the amount and the period 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

This change may affect the claimant’s entitlement to PIP. The DWP needs to know the date the claimant is leaving the country, how long they are planning to be out of the country, which country they are going to and why they are going abroad.

Stays in hospital or similar institutions

DWP guidance states both components of PIP cease to be payable 28 days after the claimant is admitted to an NHS hospital.

Privately funded patients are unaffected by these rules and can continue to be paid either component of PIP.

If a claimant is in hospital or a similar institution at the date entitlement to PIP starts, PIP is not payable until they are discharged.

Care homes

The daily living component of 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. The PIP mobility component can continue to be paid.

People 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 the other way around, 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.

The 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.

Detained in legal custody

PIP ceases to be payable after 28 days where someone is being detained in legal custody. This applies whether the offence is civil or criminal and whether they have been convicted or are on remand.

Suspended payments of benefit are not refunded regardless of the outcome of proceedings against the individual. Two or more separate periods in legal custody link if they are within one year of each other.

Change of name

This change will not affect payment or eligibility for PIP, but it is important the DWP has the most up-to-date details for the claimant.

This change needs to be reported in writing - if the claimant phones to give these details, the DWP will ask for these details to be put in writing. The written notification must contain:

• full details of their previous name

• their new name

• details of any changes made to the bank or building society account into which PIP is paid, such as the name of the account or the account number

• their signature on the letter

Change of account PIP is paid into

The DWP needs full details of the of the name and address of the new bank or building society along with details of the new account including the name of the account, the account number and the sort code or roll number.

Change of person acting for the claimant

This refers to an appointee or someone with power of attorney for the claimant.

This change is important so the DWP can make payments to the right person at the right time. They need the full name, address and contact details of the new person who is acting for the claimant.

If the person acting for the claimant has moved or has different contact details, the DWP just needs the new details.

Change of address

This change, providing it is not a hospital or nursing home will not affect eligibility or payment of PIP. It is important the DWP hold the most up-to-date details for the claimant.

They need full details of the new address the claimant has moved to, including the postcode and the date they moved.

Change of doctor or healthcare professional

This change will not affect payment or eligibility for PIP and is not mandatory once a decision on the PIP claim has been made.

However, if the change happens during the claiming stage it is essential the DWP have the most up-to-date information. This will make sure the assessment provider has the right contact details to gather any further details they may require.

The DWP needs the full name, address and contact details of the new doctor or health care professional.

Full details about changes of circumstance if you are receiving PIP can be found in the online handbook here.