The Department for Work and Pensions (DWP) has reminded Personal Independence Payment (PIP) claimants that they are responsible for disclosing one-off workshop payments to HM Revenue and Customs (HMRC). These payments are offered to individuals who voluntarily take part in new workshops designed to test PIP recommendations.
Workshop payments and HMRC disclosure
According to DWP guidance, the payments are not pensionable, and any questions about the tax arrangements should be directed to HMRC. The workshops are set to begin in mid-September and will be held across the country, including regions such as the north east, Midlands, London, south, Scotland, Wales, and Northern Ireland.
The DWP states: "Voluntary participation in this workshop is not considered to be ‘work’ for the purpose of means-tested benefits. However, if you receive benefits, you should inform your work coach or local Jobcentre before taking part."
Benefit impact and advice
Claimants are advised to seek guidance from the office that administers their benefit if they are unsure about how participation might affect their claim. Universal Credit claimants can do this through their online journal. The DWP can provide a letter detailing participation in the workshop to support conversations with benefit administrators.
Due to the value and nature of the payments, they will be treated as earnings and could affect benefit entitlement, depending on individual circumstances. The DWP advises: "You should consider the impact on your earnings or benefits by speaking to your work coach or local Jobcentre before you sign up."
Participants also have the option to take part without receiving the payment or to request a lower amount, once the payment and expense guidance has been shared with them.
Context of the Timms Review
The workshops are part of the Timms Review, launched by the Labour Party government to make PIP fairer for claimants and the taxpayer. The review aims to test recommendations through these voluntary sessions, with payments provided as compensation for participation.
