Do I Need to Tell Universal Credit If I Get PIP?

If you’re currently receiving Universal Credit (UC) and have recently been awarded Personal Independence Payment (PIP), you might be wondering whether you need to inform the Department for Work and Pensions (DWP) about your PIP award.

The simple answer is no, you do not need to tell Universal Credit if you get PIP. The two benefits are separate, and PIP does not affect your Universal Credit claim.

However, understanding how these two benefits work together can help you maximize your entitlements and ensure you’re fully aware of your rights.

Understanding Universal Credit (UC)

Universal Credit (UC) is a means-tested benefit designed to support people who are on low income, out of work, or unable to work due to certain circumstances.

It aims to simplify the welfare system by combining multiple benefits into a single monthly payment. UC has replaced older benefits like Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), and Housing Benefit.

Key Features of Universal Credit (UC)

1. Means-Tested Benefit: UC is calculated based on your household’s income, savings, and financial resources.
2. Support for Employment: It offers incentives to encourage people to work and gradually reduces payments as earnings increase.
3. Single Payment System: Unlike older benefits, UC is paid as one monthly payment to simplify the system.

UC provides financial support for living costs, housing payments, and other expenses for those on low incomes. The payment amount depends on factors like employment, savings, family size, and disabilities.

What is Personal Independence Payment (PIP)?

Personal Independence Payment (PIP) is a non-means-tested benefit intended to help people with long-term health conditions or disabilities that affect their ability to perform daily living activities or get around.

PIP is intended to provide extra financial support to cover the additional costs of living with a disability or health condition.

Unlike UC, PIP is not based on your income or financial status. It is available whether you work or not, and you can receive it in addition to other benefits. PIP is assessed on how your health condition or disability affects your ability to live independently.

Key Features of PIP:

1. Non-Means-Tested: PIP is based on your needs, not your income or savings.
2. For People With Disabilities or Health Conditions: It provides financial help if you struggle with daily tasks or mobility due to a health condition.
3. Available to Those in Work or Unemployed: You can claim PIP regardless of your employment status.

How Do Universal Credit and PIP Differ?

While both Universal Credit (UC) and Personal Independence Payment (PIP) provide financial support, they serve different purposes and operate under different rules. Understanding the distinction between these two benefits is crucial, especially if you receive both at the same time.

Feature	Universal Credit (UC)	Personal Independence Payment (PIP)
Purpose	Support for daily living costs	Help with extra costs of living with a disability
Means-Tested	Yes (based on income/savings)	No (not based on income)
Based on Disability	No	Yes (based on how your condition affects daily life)
Eligibility	Low-income, unemployed, or unable to work	People with long-term disabilities or health conditions
Affects Employment	Yes (earnings reduce UC)	No (can claim PIP while working)
Income Threshold	Income/savings affect amount	No impact of income or savings
Can You Claim Both?	Yes	Yes

Key Differences:

1. Means-Tested vs. Non-Means-Tested: UC is means-tested, so it considers your household income and savings. PIP, on the other hand, is non-means-tested, meaning you can receive it no matter how much money you have or earn.
2. Eligibility Criteria: UC supports low-income households, whereas PIP is for individuals with a disability or health condition that impacts their daily living or mobility.
3. Impact on Employment: Your earnings reduce UC payments, but working has no impact on PIP.
4. Payment Structure: UC provides one monthly payment, while PIP is paid separately every four weeks.

These differences explain why PIP does not affect UC and why you do not need to report PIP to Universal Credit.

Do I Need to Tell Universal Credit If I Get PIP?

No, you do not need to tell Universal Credit if you are awarded PIP. The two benefits operate independently, and the rules for reporting changes to UC do not include receiving PIP. Since PIP is a non-means-tested benefit, it is not included as income when calculating your Universal Credit entitlement.

Here’s why you don’t need to inform UC:

1. PIP is Not Counted as Income: Universal Credit only takes into account your earnings, certain other benefits, and savings. Since PIP is intended to help with the extra costs of living with a disability, it does not count as income.
2. No Impact on UC Payments: Your Universal Credit payments will remain the same, even if you receive PIP. Unlike wages or other income sources, PIP does not reduce your UC payments.
3. No Obligation to Report: The DWP only requires you to report changes that might impact your Universal Credit, such as changes in income, health, living arrangements, or work status. Since PIP has no impact on your UC payments, you do not need to report it.

When Should You Report Changes to Universal Credit?

While you do not have to report PIP to UC, you must report other changes, such as:

• A new job or changes in your earnings
• Changes in household size (e.g., someone moves in or out)
• Changes in housing circumstances (e.g., moving house)
• Health conditions that worsen, as this might entitle you to the Limited Capability for Work and Work-Related Activity (LCWRA) element of UC.

How Can PIP Affect Universal Credit?

Although receiving PIP does not reduce the amount of Universal Credit you receive, it can have indirect positive effects.

Qualifying for Additional Payments

If you are awarded the Daily Living component of PIP, you may be entitled to additional support through the Limited Capability for Work and Work-Related Activity (LCWRA) element of UC. This element increases the amount of Universal Credit you receive each month.

For example, if you qualify for LCWRA, you will receive an additional monthly payment (currently around £390, but this may vary depending on updated rates). This is separate from your PIP payment and does not affect your UC payments.

Carer’s Element for Universal Credit

If someone in your household cares for you for at least 35 hours a week, they may be able to claim the Carer’s Element of UC. This is an extra payment for people who provide care for someone receiving the Daily Living component of PIP.

No Deductions from Universal Credit

Unlike wages, pensions, or other sources of income, PIP is disregarded in Universal Credit calculations. This means that you will receive PIP on top of your usual UC payment.

Can You Claim Universal Credit and PIP at the Same Time?

Yes, you can claim Universal Credit and PIP at the same time. Since the two benefits operate independently and have different eligibility criteria, many people receive both simultaneously. Here’s why:

• Universal Credit supports people on low incomes, whether they have a disability or not.
• PIP is designed to support people with health conditions or disabilities, regardless of their financial situation.

It’s possible to receive both benefits, and doing so can increase your total financial support. You might also be eligible for the LCWRA element within UC if you receive the Daily Living component of PIP.

How to Apply for PIP While on Universal Credit?

If you are on Universal Credit and believe you are eligible for PIP, you can apply for it separately. Receiving UC does not prevent you from applying for PIP. Here’s how to do it:

1. Start the PIP Application

• Call the DWP PIP helpline to start the process.
• They will ask for your personal details and health condition.

2. Complete the PIP2 Form

• The DWP will send you a form to complete, called the PIP2 form.
• You will need to provide details of how your health condition affects your daily life and mobility.

3. Attend a Medical Assessment

• Some applicants are required to attend a health assessment.
• A healthcare professional will assess your condition and decide if you qualify for PIP.

4. Wait for the Decision

• The DWP will review your form and health assessment.
• You will receive a letter confirming whether you have been awarded PIP and which components (Daily Living and/or Mobility) you qualify for.

If your health condition worsens while receiving UC, you may also be eligible for the LCWRA element of UC.

Do You Need to Report Changes to Universal Credit?

Although you do not need to report receiving PIP, certain changes to your personal circumstances must be reported to Universal Credit. Here are some of the changes you need to report:

• Changes in Income: If you start or stop working, or your wages change, you must report this to UC.
• Household Changes: If someone moves in or out of your household (e.g., a child, partner, or lodger), you must inform UC.
• Change in Address: If you move to a new address, you must update UC.
• Changes in Health: If your health condition worsens, you should report this as you may be entitled to the LCWRA element of UC.
• Caring Responsibilities: If you or someone in your household becomes a carer, this could affect your UC payments.

Failing to report these changes could affect your payments and lead to overpayment issues.

What Happens If You Don’t Report Changes?

If you fail to report changes to Universal Credit, you could face serious consequences.

• Overpayment of Benefits: If UC overpays you due to an unreported change (such as a pay rise or change in household size), the DWP will seek to recover the extra payments. This could result in deductions from future UC payments.
• Financial Penalties: If the DWP believes you deliberately failed to report a change, you may be fined or face a “civil penalty.”
• Delays in Payments: If you fail to inform the DWP about a change that increases your entitlement (like reporting a new health condition), you may face delays in receiving extra payments.

However, since receiving PIP is not considered a change that must be reported, there is no penalty for not reporting it. The rules for changes only apply to changes in income, household circumstances, or health that directly impact your Universal Credit claim.

Conclusion

If you receive both Universal Credit (UC) and Personal Independence Payment (PIP), it’s important to understand how these benefits interact. PIP does not affect your UC entitlement because it is a non-means-tested benefit and is not considered income when calculating UC payments.

You don’t need to report receiving PIP to the Department for Work and Pensions (DWP) for your UC claim. However, if your circumstances change in other ways, such as your income, health condition, or living situation, you must report these changes promptly to avoid issues with your UC payments.

FAQs

Can I claim both Universal Credit and PIP at the same time?

Yes, you can claim both benefits simultaneously. They are separate benefits with different eligibility criteria.

Does receiving PIP increase my Universal Credit payments?

While PIP itself does not increase UC, qualifying for the Daily Living component of PIP may entitle you to additional elements in your UC, such as the Limited Capability for Work and Work-Related Activity (LCWRA) element.

What changes do I need to report to Universal Credit?

You need to report changes in income, living arrangements, health conditions, or caring responsibilities, as these may affect your UC payments.

How does PIP differ from Universal Credit?

PIP is a non-means-tested benefit to support people with disabilities, while UC is a means-tested benefit to help those with low income or unemployment.

Can PIP affect my employment status or income threshold for UC?

No, receiving PIP does not impact your employment status or income threshold for UC because it is not considered income.

What happens if I fail to report changes to Universal Credit?

Failing to report required changes can result in overpayments, penalties, or delays in receiving benefits. However, you do not need to report receiving PIP.