Hi Sharon,
This happened to a friend of mine - the panel chairman did not believe s/he could come to a decision without seeing the claimant in person. In which case, the DWP decision would have remained in operation.
You could try contact the Tribunal Service and asking if they could carry out the hearing over the phone or by Skype, if you think you could cope with that - but that would be entirely at their discretion.
Nothing on this board constitutes legal advice - always consult a professional about specific problems