PIP recipients may be asked to pay the money back after the DWP report

The Department for Work and Pensions, the body responsible for paying out benefits such as Personal Independence Payments (PIP), has been the subject of a damning new report which reveals benefit overpayments totaled £9.7 billion ( 3.7%) last year. The DWP distributes state pensions and social benefits to around 22.7 million people.

The Fraud and Error in the Benefits System 2024 report highlighted the overpayment of benefits which cost the department £9.7bn last year, or around 3.7% of benefits paid. This is a staggering £8.3 billion increase on the previous year.

At the same time, spending on PIP rose from £17.7 billion last year to £21.6 billion for 2023/24. However, the report also revealed an equally drastic fall in overpayments from £200m to £90m last year, with the main cause of PIP overpayments being found to be error of the claimant, usually with claimants failing to report improvements in their condition.

In total, this could mean some claimants having to repay their benefits if they were found to have been overpaid by the DWP, with around one in 100 claims being overpaid last year, according to the report. Recipients will have to repay their benefits if they are found to have failed to report a change of circumstances in a timely manner or to have provided wrong information to the DWP.

The Department also notes that sometimes claimants may receive the wrong amount of PIP by mistake. They will usually be sent a letter disclosing that they have been overpaid and detailing how to go about repaying the overpayment.

Claimants must report a change of circumstances to the DWP as soon as possible and PIP recipients can use the PIP inquiry line on 0800 121 4433, which is open from 9am to 5pm, Monday to Friday. They are advised to contact the inquiry line immediately if their condition improves or worsens.

This may include needing more or less help, going to hospital or college, planning to be abroad for more than four weeks or if a healthcare professional has changed the prognosis of their condition. Not all changes of circumstances directly affect a PIP recipient’s health, although other vital changes DWP need to update include personal details such as address, telephone numbers and bank accounts.