The Department for Work and Pensions (DWP) mistakenly issued £850 million in benefits to recipients who had passed away. These overpayments occurred due to delays in reporting deaths, resulting in benefits being paid out after the individuals had died.
Instances of overpayment can also occur when claimants enter hospitals or care homes where their care is funded by the NHS or local authorities. Typically, disability payments like PIP are paused if someone stays in a hospital for 28 days.
The Telegraph revealed that the £850 million comprised various benefits, including mental health support, out-of-work benefits, state pensions, and others. An investigation found 2.6 million errors since 2021, with less than half of the overpaid amount recovered.
In response, a DWP spokesperson stated that the department aims to recover debts where feasible. They advised those who have recently lost a loved one to use the Tell Us Once service to notify relevant authorities efficiently to prevent wrongful benefit payments.
Following this issue, the DWP has been granted expanded powers to scrutinize bank accounts to combat benefit fraud. The Public Authorities (Fraud, Error and Recovery) Act 2025 empowers the DWP to verify claimants’ eligibility by checking financial details, such as savings and overseas spending patterns.
For instance, individuals on Universal Credit are generally limited to £16,000 in savings, while Pension Credit recipients cannot stay abroad for more than four weeks. Importantly, the DWP cannot access real-time transaction data or login to claimants’ bank accounts directly.
If potential issues are flagged by banks, the DWP will conduct further investigations but emphasizes that benefit decisions won’t rely solely on bank account data. In certain cases, the DWP can recover owed amounts from claimants’ bank accounts without court orders.
Throughout our platforms, including Reach, we and our affiliates use cookies and identifiers to enhance site experiences, analyze usage patterns, and provide personalized ads. You can manage your data preferences by clicking the “Do Not Sell or Share my Data” option at the bottom of the page. By using our services, you consent to our use of cookies and agree to our Privacy Notice and Terms and Conditions.