**DWP Admits Major PIP Payment Error Affecting Over 630,000 Households: Could You Be Owed Thousands?**
A significant administrative error at the Department for Work and Pensions (DWP) has left more than 630,000 households across the UK potentially short-changed by their Personal Independence Payment (PIP) entitlement, with compensation totalling up to £12,000 due to some claimants.
PIP is a benefit aimed at supporting individuals who find daily living or mobility tasks more challenging due to long-term health conditions, disabilities, or mental health issues. Payments are split into two parts: the daily living component and the mobility component, with eligibility determined by a points-based health assessment. Individuals may qualify for one or both components, depending on their specific needs.
The root of the issue stems from a Supreme Court ruling in July 2019, commonly known as the MM judgement. This landmark decision clarified how “social support” should be interpreted for the purposes of PIP assessments. As a consequence, the DWP was required to change the way it evaluates claimants’ need for support during face-to-face social interactions—a change that made thousands more eligible for higher benefits.
An internal review began in 2021 to address the implications of this new legal interpretation. Official figures now reveal that, as of summer 2025, an estimated 633,338 PIP claimants have been caught up in this process. From these, 527,745 reviews have already been carried out, resulting in backdated payments totalling £250 million. The department has, so far, averaged payouts of £5,285 per case, highlighting that the sums involved can be life-changing for some claimants.
However, not all affected cases have been resolved. The latest data shows a substantial backlog remains, with 105,593 claims still awaiting review. In certain scenarios, eligible individuals have received retrospective payments as high as £12,000—a windfall for those wrongly denied what they were entitled to for years.
It isn’t just this specific error that the DWP has been working to rectify. Further administrative missteps have been identified, such as instances where applications were dismissed due to applicants not having a National Insurance number—a requirement that, according to DWP rules, should not have barred a claim. In the past year, approximately 455 cases of this nature have been reviewed, resulting in an additional half a million pounds being distributed.
The department’s scrutiny doesn’t stop there. In Scotland, thousands were affected as they were moved from PIP to the Adult Disability Payment (ADP), with some losing eligibility in error. To date, £13 million has been paid in compensation to Scottish claimants, and the review remains ongoing, emphasising the complexity and wide-reaching nature of these mistakes.
For those currently claiming, PIP is paid every four weeks, with rates in 2025 for the daily living component set at £73.90 per week for the lower rate and £110.40 for the higher rate. For the mobility component, claimants receive either £29.20 or £77.05 a week, depending on their assessed needs. Someone qualifying for the highest rates on both elements would see £749.80 transferred to their account every four weeks—so the financial impact of any error is considerable.
The Department for Work and Pensions has urged anyone who believes they may have been affected to await contact. Claimants do not need to pursue the DWP themselves—the department says it is systematically reviewing cases and will write to those owed money.
While the process is ongoing, this situation has prompted much discussion around the accuracy of benefits assessments, the administrative challenges in delivering welfare, and the importance of ensuring that vulnerable people receive the support they are entitled to under the law.
The DWP continues to update the public on progress, assuring claimants that no one will be left out and that no action is required unless written to directly. This episode serves as a stark reminder of the importance of vigilance, both within government systems and for claimants themselves, to ensure those most in need are never left behind.