Hundreds of thousands of disabled individuals across the UK are entitled to compensation from the Department for Work and Pensions (DWP), following revelations of significant errors in the administration of Personal Independence Payment (PIP).
Over £260 million in back payments has already been distributed to claimants who were either wrongly denied or underpaid due to DWP miscalculations.
However, more than 300,000 people are still awaiting payments, with some individuals potentially owed over £2,000 in arrears.
PIP, which supports people facing extra costs due to illness or disability, is currently claimed by 3.7 million people across the UK.
The benefit recently came under political scrutiny as part of Labour’s proposed welfare reforms—plans which were ultimately shelved following widespread backlash.
According to the DWP’s latest annual report, three key administrative errors have triggered a series of repayment initiatives. Two of these errors were newly discovered this year.
The largest error stems from a Supreme Court ruling that altered how eligibility is assessed—specifically around a claimant’s ability to engage with others face-to-face.
The decision required a more lenient interpretation, leaving approximately 325,000 PIP claimants potentially underpaid. So far, 308,000 cases have been reviewed, with £250 million already repaid—an average of £800 per claimant.
Another error, newly identified, relates to the incorrect processing of applications where claimants did not submit a National Insurance number—despite this not being a requirement for applying.
Only 455 cases have been reviewed so far, with £500,000 in compensation paid out. This equates to a minimum average payout of £1,098 per person.
A third issue has affected thousands of Scottish claimants who were transitioned from PIP to the new Adult Disability Payment (ADP), the devolved benefit replacing PIP in Scotland.
Around 4,867 individuals were flagged for possible payment suspensions during the handover. Of those, just 176 cases remain under review, and £13 million has already been distributed—resulting in an average payout of £2,771 per claimant.
The ongoing compensation schemes have intensified public criticism of the DWP’s handling of disability benefits.
In response, and following Labour’s U-turn on tightening PIP eligibility, Social Security Minister Stephen Timms has pledged a comprehensive review of how well PIP is serving the needs of disabled claimants.
