DWP Announces for April 2025: Higher Universal Credit, PIP, and Pension Rates Revealed

The Department for Work and Pensions (DWP) is under fire for failing to adequately support disability benefit claimants, leaving them at risk of increased hardship, according to a damning new report by the Commons cross-party Public Accounts Committee (PAC). The report highlights serious issues with long call waiting times, underpayments, and poor customer service, particularly affecting those claiming health-related benefits.

Key Findings from the PAC Report:

1. Poor Service to Disabled Claimants

The PAC found that disabled benefit claimants experience an “unacceptably poor” level of service, with long delays and inefficient processing of claims. For example, only 50% of new Personal Independence Payment (PIP) claims are processed on time, compared to 96% of state pension applications.

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Claimants of Employment and Support Allowance (ESA) face significant delays, waiting an average of 30 minutes to speak to a DWP agent. By contrast, those calling for Universal Credit support wait just two minutes.

2. Underpayments Linked to Poor Communication

The issue of underpayments—estimated at £4 billion in 2023/24—is worsened by long call waiting times. Disabled claimants often need to call the DWP to report changes in their circumstances, which could qualify them for higher benefits. Unfortunately, too many calls go unanswered, delaying critical updates and payments.

3. £9.5 Billion in Overpayments

The report also revealed that £9.5 billion in benefit payments was overpaid in 2023/24, primarily due to fraud and error. The PAC urges the DWP to explain how it plans to use the £110 million allocated in the Autumn Budget to address this issue.

Public and Expert Reactions:

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Sir Geoffrey Clifton-Brown MP, chair of the PAC, highlighted the stark differences in service quality between disability claimants and others. He warned, “In some cases, claimants are literally calling for help and receiving no answer, resulting in increasing risks to their financial security.”

He called on the DWP to act swiftly, stating, “The DWP must ensure that claimants receive the money they are entitled to and understand the needs of vulnerable customers.”

Richard Kramer, CEO of the disability charity Sense, echoed these concerns. He said, “We’ve been told again and again by disabled people that getting the help they’re entitled to has been an ordeal. Half of people with complex disabilities have reported that the benefits process worsened their condition. It shouldn’t be like this.”

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Kramer urged the Government to use the upcoming Health and Disability Green Paper to create a more accessible, dignified system for disabled claimants.

DWP’s Response:

A DWP spokesperson acknowledged the issues but emphasized that improvements are already underway:

• Reduced call waiting times and tailored support for vulnerable customers.
• 1.7% increase in benefits this April to help claimants cope with rising costs.
• Anti-fraud measures: The new Fraud Error & Recovery Bill aims to prevent overpayments and save £1.5 billion over the next five years.

What’s Next?

The PAC’s report comes as the Labour Party prepares plans to reform health and disability benefits. With 4.2 million people currently claiming disability-related benefits, the Government aims to introduce measures to address inefficiencies and improve access. A Green Paper detailing these plans is expected soon.

The PAC’s findings highlight urgent issues within the DWP that disproportionately affect vulnerable claimants. With growing public pressure, disability advocates, and planned government reforms, significant changes may be on the horizon. However, whether these efforts will be enough to restore trust and improve service for disabled claimants remains to be seen.

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