Money Wellness

benefits

Published 30 Aug 2024

3 min read

More than 300,000 households owed PIP back payment

Hundreds of thousands of personal independence payment (PIP) claimants could be owed backpay after a supreme court ruling. Find out more, including what to do if you might be affected.

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Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 30 August 2024

What’s changed?

The supreme court changed the way ‘social support’ is defined in one of the assessed PIP categories back in 2019. Under the scoring system, assessors had to decide if someone needed ‘prompting’ to engage with other people, or ‘social support’.

If someone needed ‘prompting’ rather than ‘social support’, they scored fewer points, which could make all the difference between being awarded PIP or being turned down.

It also means many didn’t receive the daily living element of PIP, despite being entitled to it.

And others should have received the enhanced rate but were awarded the standard rate instead. The standard allowance is currently worth £68.10 a week while the enhanced rate is £101.75 each week.

So if you’ve been underpaid, you could be owed a back payment of up to £12,000 – though the average works out at around £5,285.

The ruling has been dubbed the ‘MM judgment’ – named after the man who successfully challenged the PIP points scoring system. MM was originally deemed ineligible for PIP because of confusion about the criteria.

PIP claim review

The Department for Work and Pensions (DWP) has been looking at PIP claims since 6 April 2016 to see if claimants should be getting more support.

Around 632,286 cases need a review – so far, 219,080 cases have been reviewed and £142m paid out to those affected.

DWP says it’s trying to make backdated payments “as quickly as possible” and is continuing to review claims affected by the definition change.

A spokesperson said: “We are also testing a more proportionate approach for claimants who might be affected by the timing element only.”

Those who are terminally ill or who have recently died have been prioritised by DWP to test communications and processes before ramping up efforts with other claimants.

DWP isn’t reviewing claims if:

  • claimants received an enhanced daily living rate continuously since 6 April 2016
  • a tribunal has made a decision about a claim since 6 April 2016
  • a decision not to award PIP was made before 6 April 2016

How to appeal a PIP decision

You can challenge a PIP decision if you think it was wrong, including if you think your payments have been affected by the MM judgment.

You can ask for a ‘mandatory reconsideration notice’ and DWP will look at your claim decision again.

Find out more about how to do this in our guide about challenging a PIP decision.

Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

Published: 30 August 2024

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 30 August 2024

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