Personal finance experts have unveiled a comprehensive list of Department for Work and Pensions (DWP) mistakes that may entitle individuals to significant compensation.
These errors affect key benefits such as Personal Independence Payment (PIP) and the State Pension, with many recipients potentially due refunds worth thousands of pounds.
The issues mainly affect people with long-term illnesses, disabilities, or mental health conditions, as well as those who provided unpaid care between 1978 and 2010. With the cost of living crisis worsening, these refunds could provide much-needed financial relief.
PIP: Financial Support for Disability – But Errors Detected
The Personal Independence Payment (PIP) provides financial help for those dealing with chronic health conditions. Under current rules, claimants can receive up to £187.45 per week.
Supreme Court Ruling: The “MM Judgment”
A pivotal Supreme Court decision in July 2019 redefined how the DWP evaluates ‘social support’ within PIP assessments. This ruling triggered a DWP review, revealing that many claimants were underpaid—as they were not awarded one of the PIP components they were eligible for.
- Average refund amount: £5,285 per claimant
Additional PIP-Related Errors
Recent findings also highlighted two more administrative mistakes:
- Missing NI Numbers: Some claimants were denied support simply for not having a National Insurance number, even though it is not a requirement for a valid claim.
- Scottish Claimants: Individuals transitioning from PIP to Adult Disability Payment (ADP) in Scotland faced incorrect loss of entitlement notices, resulting in interrupted support.
State Pension Mistake: Missed Years of Care Impacting NI Credits
One of the most significant DWP errors involves the State Pension and Home Responsibilities Protection (HRP). This mistake may affect individuals who cared for children or disabled persons between 1978 and 2010.
Who’s Affected?
- Individuals aged 41 to 90
- Those who claimed Child Benefit or Income Support before May 2000
- People who left paid employment to provide unpaid care
HRP was designed to reduce the required number of National Insurance (NI) years needed for a full pension. However, more than 100,000 people, mostly women, did not receive their HRP correctly, resulting in reduced State Pension payouts.
- Average arrears payout: £8,377
- Review period: 8 January 2024 to 31 March 2025
How to Check Eligibility and Claim
The DWP is contacting affected individuals directly, but you can also take proactive steps:
- Visit the official UK government website
- Use the online tools to check eligibility for backdated HRP
- The process takes around 15 minutes via HMRC
Refund-Triggering DWP Errors At a Glance
| Benefit Affected | Type of Error | Average Refund |
|---|---|---|
| State Pension | Missed HRP due to caring responsibilities (1978–2010) | £8,377 |
| PIP | MM judgment – incorrect definition of ‘social support’ | £5,285 |
| PIP (New Errors) | Claims rejected for missing NI number or loss of entitlement due to ADP switch | Varies |
With multiple DWP errors now officially recognized, thousands of UK citizens may be entitled to significant refunds on both PIP and State Pension benefits.
If you or a loved one provided unpaid care in past decades or are receiving disability benefits, it’s vital to verify your National Insurance contributions and review any communication from the DWP. These refunds could make a substantial difference during the ongoing cost of living crisis.
FAQs
How do I know if I qualify for a State Pension refund due to missed HRP?
If you cared for someone between 1978 and 2010 and claimed Child Benefit or Income Support, you may qualify. You can check your status on the HMRC website.
What is the MM judgment and how does it affect PIP payments?
The MM judgment changed how the DWP interprets ‘social support’ for PIP. It may mean that claimants were underpaid and are now due back payments.
Can I still get a PIP refund if I didn’t have a National Insurance number?
Yes. One of the errors involves unfairly rejected claims due to missing NI numbers. You should reapply or contact DWP for reassessment.