The Department for Work and Pensions (DWP) mistakenly paid out £850 million in benefits to individuals after their deaths, according to reports. These overpayments occurred due to delayed death notifications or when benefits were scheduled to be paid despite the recipient’s passing.
Instances of overpayments can also arise when beneficiaries are hospitalized or in a care facility where their expenses are covered by the NHS or local authorities. Typically, disability benefits like PIP cease or are temporarily halted after a person has been hospitalized for 28 days.
While the specific types of benefits that were overpaid remain undisclosed, it is believed to include mental health support, unemployment benefits, state pensions, and others. An investigation disclosed that approximately 2.6 million errors have been recorded since 2021, with less than half of the £850 million reclaimed so far.
A DWP spokesperson stated that the department’s policy prioritizes recovering outstanding debts when feasible and cost-effective. They encouraged individuals who have recently lost a family member to use the Tell us Once service for streamlined notification to various government agencies.
Following the introduction of the Public Authorities (Fraud, Error, and Recovery) Act 2025, the DWP now possesses enhanced authority to request financial institutions to validate the financial details of benefit claimants. This includes scrutinizing savings amounts and monitoring extended periods spent abroad.
Claimants of Universal Credit are typically restricted from holding more than £16,000 in savings, while Pension Credit recipients are limited to a four-week absence overseas. Notably, the DWP is prohibited from directly accessing or monitoring personal bank accounts in real-time.
If suspicious activity is flagged by a bank, the DWP will investigate further before making any benefit-related decisions. In certain cases, the DWP can retrieve owed funds directly from a beneficiary’s bank account without requiring a court order.
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