DWP records record £170 million in pension overpayments to deceased claimants
The Department for Work and Pensions paid £170 million to pensioners who had died, with almost half of the sum still unrecovered.
The Department for Work and Pensions disclosed that it paid a record £170 million in pension benefits to individuals who had already died, largely because death notifications lagged. Nearly half of that amount remains unrecovered, prompting the DWP to write off £16.5 million while actively pursuing £67 million in repayments. The overpayments cover both state pension and pension credit schemes.
The department explains that it writes off debts when collection costs exceed the amount owed, and it can only compel repayment from estates for overpayments made while the claimant was alive. Relatives are not normally required to repay unless they committed fraud or provided false information. The DWP encourages use of its “Tell us Once” service to speed up death notifications.
Why it matters
It highlights the scale of pension overpayments and the challenges of recovering public funds after a claimant's death.
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