DWP Confirms Back Payment Rules for Universal Credit, PIP, and Pension Credit
DWP Update on Benefit Back Payments and Mandatory Reconsiderations

The Department for Work and Pensions (DWP) has issued a significant update concerning back payments for benefit claimants, clarifying the rules for those on Universal Credit, Personal Independence Payment (PIP), and Pension Credit.

What is a Mandatory Reconsideration?

This process came to light following a parliamentary question from Liberal Democrat MP for Hazel Grove, Lisa Smart. She asked the Government to assess the potential impact of mandatory reconsiderations on the finances and emotions of affected people and what is done to ensure these reviews are completed promptly.

A mandatory reconsideration is the first step you can take if you disagree with a benefit decision. You must contact the office that handles your claim, using the details provided in your decision letter, to request this review.

How Back Payments Are Awarded

In a written response, DWP minister Sir Stephen Timms explained the crucial link between mandatory reconsiderations and potential lump sum payments. He stated: "Mandatory reconsideration offers claimants the opportunity to challenge decisions and provide additional information which may be relevant to their claim."

He provided clear details on financial entitlements, confirming: "Entitlement is usually from the date of claim, so if a decision is changed at mandatory reconsideration, the amount awarded will be the same as if it were awarded at the initial decision stage. Arrears are paid as a lump sum."

This means if your challenge is successful, you should receive a single backdated payment covering the period from your original claim date.

Information Required and Processing Times

When requesting a mandatory reconsideration, you must provide specific details to support your case. Essential information includes:

  • The date of the original benefit decision.
  • Your full name, address, and date of birth.
  • Your National Insurance number.

Critically, you should also clearly explain which part of the decision you believe is incorrect and why. You can strengthen your case by submitting supporting evidence, such as:

  • New medical reports or care plans from professionals.
  • Recent bank statements or payslips.
  • Any other relevant documentation.

Once the review is complete, you will receive a 'mandatory reconsideration notice' letter. This document will inform you of the new decision and outline the reasons and evidence considered.

Addressing concerns about delays, Sir Stephen Timms added: "We are allocating more decision makers to mandatory reconsiderations to ensure decisions are made in as timely manner as possible."

This update provides crucial guidance for millions of households across the UK who rely on DWP and HMRC benefits, offering a clearer path to challenging decisions and securing owed funds.