DWP payout could see thousands of benefits claimants given £5,300 backpayment | Personal Finance | Finance
Thousands of Personal Independence Payment (PIP) claimants could be due refunds after a Supreme Court judgment ruled the DWP got the law wrong.
Claimants could be due refunds as far back as April 2016 after rules changed about the points claimants receive and PIP.
In 2019, the judgment ruled that the DWP had got the law wrong when determining the points that PIP claimants could get for the activity of “combating with others face-to-face” during their PIP assessment.
Previously, claimants who needed a “promotion” to compete with others would receive a lower score.
This meant they would have received a lower overall score – meaning they could have missed out on the higher aspects of PIP payments when they should have been entitled to it.
In a new update published last week, the DWP says it has reviewed around 79,000 cases against the “MM Judgment” where claimants were previously deemed to need “tips”.
The DWP has also made around 14,000 payments to those who were underpaid as a result of the new ruling.
In total, the DWP has made around £74 million worth of arrears and more are expected to come as the benefits department has identified around 326,000 cases for review.
On average, each payout was worth around £5,300. However, it should be noted that the amount a person receives may be higher or lower depending on different situations.
As well as the claims identified by the DWP, the Department is asking around 284,000 current claimants to contact them if they think they may have been affected.
In a written statement published by the House of Lords last week, Tom Pursglove, the minister for disabled people, health and work, said: “We are determined to make backdated payments to all claimants affected by this judgment as as fast as possible.
“So, as well as continuing to review claims affected by the definition of ‘social support’, we are also testing a more proportionate approach for claimants who may be affected by the timing aspect alone .
“We will be inviting around 284,000 claimants in this group to contact the Department if they think their claim is affected by this judgment and have not previously been identified as needing help to contact others face to face because there was any help they received beforehand. . I believe the right approach is to prioritize cases where claimants are likely to be entitled to more support.”
In July 2019, the Supreme Court ruled that the “MM Judgment” would change the way the DWP considers the definition of “social support” when PIP claimants come into contact with other people face-to-face.
The MM judgment only affects the assessment of the Daily Living part of the overall PIP assessment.
The DWP is reviewing cases where extra points for Activity 9 of the PIP assessment could make a material difference to the amount of PIP they were entitled to.
According to the charity Disability Rights UK, the following are among the people who may miss out on the Daily Living element of PIP, or who have been awarded the standard rate and may be entitled to the rate of improvement:
- People who have regular meetings with a mental health professional, without which they would not be able to manage face-to-face contact
- People who need input from specific friends or relatives experienced in supporting them in social situations – rather than just any well-meaning friend or relative – to help them manage face-to-face interactions.
The DWP is not reviewing claims:
- The daily living improvement rate of PIP has been awarded continuously since 6 April 2016
- S Tribunal made a decision on a claim from 6 April 2016
- A decision was made not to award PIP before 6 April 2016
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