The Department for Work and Pensions (DWP) has confirmed that some Personal Independence Payment (PIP) claimants may be missing out on extra payments due to unreported changes in their health or care needs. According to the latest fraud and error figures, incorrect PIP payments increased sharply during the last financial year, with changes in claimants’ health or daily living needs accounting for the majority of overpayments.
Rise in PIP Overpayment Rate
The latest Fraud and Error in the Benefit System report found that the PIP overpayment rate increased to 2.3 per cent (£660 million) in the financial year ending 2026, up from 1.3 per cent (£330 million) the previous year. The DWP described this as a “statistically significant increase” and part of an upward trend that began in the financial year ending 2024. PIP is designed to help people with extra living costs caused by long-term disability, ill health, or mobility needs.
Overall spending on the disability benefit rose to £28.5 billion in the year ending April 2026, compared to £25.8 billion the previous year. The proportion of incorrect PIP claims doubled to four in every 100 claims during the same period.
Functional Needs as Main Cause
According to the DWP, ‘Functional Needs’ remained the primary reason for PIP overpayments, accounting for more than £7 in every £10 overpaid on the benefit. These cases involve claimants failing to report an improvement in their health, daily living, or mobility needs that could affect their entitlement. The DWP noted that overpayments linked to Functional Needs rose sharply to 1.7 per cent in the financial year ending 2026, up from 0.8 per cent the previous year.
The report also highlighted that Functional Needs Fraud accounted for around half of all PIP overpayments. The fraud overpayment rate increased to 1.4 per cent (£410 million) during the year ending April 2026, compared to 0.4 per cent (£100 million) the previous year. The DWP stated that this rise was “the main driver behind the statistically significant rise in the total PIP overpayment rate recorded this year.”
Other Causes of Overpayments
Overpayments caused by official error remained stable at 0.2 per cent (£50 million), while claimant error stayed at 0.7 per cent (£210 million). The report also noted a significant increase in cases classed as “Not Reasonably Expected To Know” (Not RETK), where claimants were overpaid but the DWP decided they could not reasonably have been expected to know they should report the change affecting their claim. The rate of these cases rose to 3.6 per cent (£1.03 billion) in the financial year ending 2026, up from 1.9 per cent (£500 million) the previous year. The DWP said this was the highest level recorded since PIP fraud and error measurement began.
Underpayments Remain Low
PIP underpayments remained much lower than overpayments. The underpayment rate stayed at 0.2 per cent (£70 million) during the year ending April 2026, with all underpayments linked to incorrect award determinations by the DWP. The Department stressed that the figures are statistical estimates designed to measure incorrect payments across the benefits system, rather than findings linked to individual investigations or reassessments.
Claimants are urged to report any changes in their health or care needs promptly to ensure they receive the correct amount of PIP and avoid missing out on potential extra payments.
