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A new report shows thousands of people are missing out on the benefits they are entitled to, with PIP claimants the most underpaid.
Last year, claimants received around £4.2 billion less than they were entitled to, according to the National Audit Office (NAO) report.
This includes £870 million in underpaid PIP payments, as well as £750 million in disability living allowance. Most of this is due to “unfulfilled entitlements”, meaning people are not claiming what they could claim.
The spending watchdog also found that customers spent more than 753 years waiting for their calls to be answered in 2023/24. This is split between around 652 years on the DWP’s internal lines and 102 years on its outsourced lines.
The figures come from a report into DWP customer service, which found the department had “failed to meet expected standards” in recent years, with PIP being a particular concern.
Last year, only half of new PIP applications were processed within the 75-day time limit, while almost all new state pension applications were processed within ten days. The average on-time processing rate for all benefits was 72%.
Unmet eligibility specifically refers to claimants who are already receiving certain benefits, but may not be receiving all the money they are entitled to under that benefit.
“Providing accurate information and providing evidence may change the amount of benefits people are entitled to and, in some circumstances, they may be entitled to more money,” the DWP said in May.
“However, we cannot calculate the exact amount unless people tell us exactly what their situation is. This means that people cannot claim an increase in the amount of aid until we have the correct information.”
Eligibility not met – what applicants need to know
Unfortunately, claimants who are not eligible for higher payments due to unmet eligibility cannot claim retroactive payments.
The DWP’s official position is that legal entitlement only begins to kick in when they are notified of a “change in circumstances or provide evidence to support their entitlement”.
Rachael Walker, director of policy and research at Policy in Practice, says that for PIP claimants, “there is only one way to maximise your payments”.
“If your health or circumstances deteriorate, you could move from the low PIP rate to the high rate.”
The amount you receive under PIP will be determined based on an assessment of your health and disability. The lowest rate is £72.65 per week, or £3,777.80 per year. The highest or ‘enhanced’ rate is £108.55 per week, or £5,644.60 per year.
“I don’t think the message that once you’re on PIP there’s another level you can go to has really gotten through,” Walker says.
“Even if you are on a welfare benefit, check regularly to make sure you are at the right level,” she advises. “Review your benefits regularly as you would any other financial aspect of your life.”
Responding to the NAO’s findings, a DWP spokesperson said: “We recognise the challenges set out in this report and are committed to delivering an effective and compassionate social care system.
“The DWP has implemented a service modernisation programme which aims to address these issues and improve customer service.”
The report follows the findings of the Policy in Practice survey which revealed that almost £23 billion of welfare benefits go unclaimed each year. This is not just about people not meeting the eligibility criteria, but also about people not claiming the benefits they are entitled to at all.
The research group offers a useful calculator to help you figure out what you might get.
For the latest DWP payment dates and news, check out The Independent’s guide to the latest information
