A new report has exposed the startling underpayment rates by the Department for Work and Pensions (DWP). The Public Accounts Committee report criticised the DWP for its customer service approach and its overall understanding of customers’ experiences, particularly those with disabilities and complex needs. The report revealed that benefit claimants received over £4 billion less than they were entitled to during 2023/2024, a significant increase from the £3.5 billion measured the previous year. However, these figures do not account for inflation or annual benefit uprating.

Personal Independence Payment (PIP) and Employment and Support Allowance (ESA) recipients, along with other disability benefits, had the highest underpayment rates, often due to unrecorded changes in circumstances. These changes can range from income levels, starting or stopping education, household deaths, changing doctors, hospitalisation, or having a baby among many others. The report highlighted the difficulty claimants faced when contacting the DWP to report these changes, especially over the phone. It highlighted that many calls are going unanswered or being put on hold for an average of 30 minutes for ESA calls.

It's crucial to report any changes in circumstances for a variety of benefits to ensure you're still receiving the correct amount you're entitled to. For instance, if you're on the standard rate of PIP and your health condition has worsened since your last assessment, you might be eligible for the advanced rate. Conversely, if you're claiming Universal Credit and secure a job that pays above a certain threshold, you may be entitled to less benefit or none at all. If you continue to claim after this change in circumstances, you could be accused of benefit fraud and required to repay the benefits you fraudulently received.

The Gov.uk. website suggests using benefit calculators or checkers to determine how much and which benefits you might be eligible for. There are independent, free, and anonymous calculators available through Policy in Practice, Turn2Us, and Entitled To. The government also provides its own calculator. For most of these, you'll need to have certain information readily available, such as date of birth, employment details, disability information, details of children living with you, and information on any savings or investments you may have.

Reacting to the report, a spokesperson for the Department for Work and Pensions (DWP) commented: "We have reduced phoneline waiting times and are providing tailored help for customers with additional needs while also uprating benefits by 1.7% this April to ensure that customers get all the support they are entitled to. "The report does not consider that we are already taking action on fraud and error through our new Fraud Error & Recovery Bill which will help us protect claimants by stopping errors earlier alongside saving an estimated £1.5 billion of taxpayer money over the next five years.".