PIP Arrears and Debt Management

Dear All,

We have seen a recent number of cases when PIP arrears are due, further to a successful appeal, being partially withheld, and that withheld payment being ‘offered’ to debt management.

We had noted that they only seemed to do this for clients who were getting an additional amount i.e. DL added to mobility award, and so it seemed only when PIP is already in payment.

However, we now have had several where they are new awards but the arrears are either not being paid, and offered to debt management, or that it is partial amounts of arrears due being paid with a proportion offered to debt management.

We appreciate that PIP can probably do what they are doing, but never seemed to do so before, but there also seems to be no consistency to how they do this or guidance, that I have been able to locate so far?

Anyone get any ideas, would be much appreciated.

I can raise it via stakeholder forum if that would be helpful?

Yes, please!

Think if this is a policy change we need to know about it, and then also consider any possible input/challenge as it seems to be a significant change?

Many thanks.

I’ve sent an email up - will update here when I hear…

Hello
I and my colleague have had some success in contacting Debt Management and requesting that some of the arrears diverted to service debts are paid to the client - see here, if it helps:
https://www.rightsnet.org.uk/forums/viewthread/18885

Many thanks, Bristol!

My question though was more that we’ve only seen this recently, since November.

So would appear to be a change of policy, and so why and what is that policy?

Reply from DWP - apparently no policy change -

I have been talking to my colleagues in PIP and Debt Management and they state that there has been no change in policy relating to debt recovery and that the debt recovery team use the same Benefit Overpayment Recovery Guide that is published on the .Gov website to inform their practice.

https://www.gov.uk/government/publications/benefit-overpayment-recovery-staff-guide/benefit-overpayment-recovery-guide#chapter-8

Daphne,

Many thanks - but it is odd, we know they can deduct from PIP, but not seen until very recently and have been involved in cases when arrears paid for many years.

So, as I say, does seem odd they are now doing something that they never seemed to do and for no apparent reason,?

And why only part of the award not already in payment that is used, that is not in the recovery guide, at a stretch you can say it is their discretion, but be nice to know why they have started to recover and how they determine what part of the arrears awarded to use?

Thanks again.

Have seen it a fair bit over the past couple of years. I continue to be appalled by it but I don’t necessarily see it as new right now. It was certainly new a few years back.

Mike,

Thanks for this, definitely something we have not seen before - as I say it bugs me as they are almost saying we know this is morally questionable, which is to say if a new award, they don’t touch it, but if a component added on, or an increase of a component is awarded, that they will offer that part only to debt management?

Anyway, we live and learn.

Thanks again.