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Daily Mirror
Daily Mirror
Business
David Bentley & David Bentley

Brits claiming benefits could be owed thousands after DWP error - as one man wins £12,000

Brits on benefits could be in line for thousands of pounds after a Government mistake when paying out welfare cash.

One man got £12,000 in backpaid Personal Independence Payment (PIP), reports BirminghamLive.

There are two issues that mean benefits claimants could be owed cash.

The first is specific to PIP. In 2017 a court ruling said PIP assessments were discriminating against people with mental health conditions.

Some claimants were underpaid, and others were denied altogether.

The Department for Work and Pensions (DWP) has been going back and repaying people who should have been getting more in PIP payments.

However, if you think you may be affected you should contact DWP directly.

Figures from the DWP today show the government has made 8,200 of these payments, totalling £42million.

The issue affects decisions on PIP claims made between November 27, 2016 and June 28, 2018.

PIP is a benefit meant to help people with a long-term physical or mental health condition or disability.

People claiming PIP for the following reasons during the timeframe affected could be owed more money.

The key conditions are:

  1. Agoraphobia
  2. Alcohol misuse
  3. Anxiety and depressive disorders (mixed)
  4. Anxiety disorders
  5. Autism
  6. Bipolar affective disorder (hypomania/mania)
  7. Cognitive disorders
  8. Dementia
  9. Depressive disorder
  10. Drug misuse
  11. Learning disability
  12. Mood disorders
  13. Obsessive compulsive disorder (OCD)
  14. Panic disorder
  15. Personality disorder
  16. Phobias
  17. Post-traumatic stress disorder (PTSD)
  18. Psychotic disorders
  19. Schizoaffective disorder
  20. Schizophrenia
  21. Stress reaction disorders

The second reason claimants could be owed DWP cash is because there were underpayments totalling £2.6billion between April 2021 and April 2022.

A series of mistakes with State Pension payments are being looked at relating to married women, widows and people over the age of 80.

In its most recent public update in February, the DWP said its checking process had identified 14,239 underpayments where pensioners were owed a total of £94.3million.

However, while some have been underpaid, some have been overpaid too.

What happens if you are underpaid benefits?

The DWP s will normally spot the problem and pay you what you are owed as a lump sum.

But if you think you have been underpaid and the DWP has not contacted you or corrected the issue, you can contact them to enquire.

Universal Credit claimants can call the official helpline on 0800 328 5644 or use their online account.

If you think you have not had the correct State Pension amount, you should contact the Pensions Service arm of the DWP directly on 0800 731 0469.

What happens if you are overpaid benefits

If you have been overpaid benefits, the DWP can recover any extra from you by making deductions from your future payments.

Normally this means a 15% to 25% reduction in your benefits each month. If you’re struggling, you can ask officials to reduce the amount.

The DWP said: "If you have been overpaid, you will have a journal message or letter explaining what the overpayment is for.

"If you believe you have been overpaid but have not heard from DWP, you must report it immediately. If not, you may be prosecuted or have to pay a penalty."

If you’re still receiving benefits, the regular amount you get will be reduced until you’ve paid back the money. Contact the DWP Debt Management contact centre if you think too much has been taken out for a repayment.

If you've since come off benefits, you will still have to pay the money back.

And if you do not make the repayments, the DWP passes the case to an independent debt collection agency.

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