The Department for Work and Pensions (DWP) is refunding up to £5,000 to nearly 200 people who were wrongly issued administrative penalties (ad pens) for suspected benefit fraud. A review found that more than one-fifth of ad pens accepted by individuals in 2023-24 and 2024-25 should not have been given.
Why the penalties were wrong
Ad pens are fines equal to 50% of the alleged overpaid amount, capped at £5,000, paid to avoid prosecution. A report said: “We identified that some administrative penalties that were offered and accepted should not have been offered in the first place and action has been taken to correct this.”
The report added: “Reasons for this included procedural errors and evidence gathered which, on re-examination, was not deemed sufficient to have a reasonable prospect of securing a conviction or where circumstances of a case were not fully factored into the decision making.”
DWP response and next steps
A DWP spokesperson told Civil Service World: “In an effort to identify opportunities for improvement we proactively reviewed our use of administrative penalties and identified a small number of cases where they were incorrectly applied.
“We have put this right by removing and refunding those penalties, contacting affected customers, and strengthening our processes to ensure decisions are made consistently and appropriately in future.”
The Government says an ad pen “can be offered in cases of benefit fraud where there is clear evidence of criminality”. In June 2025 it added: “Ad Pens provide a proportionate and cost-effective alternative to pursuing cases through the court system.
“Where a person accepts an Ad Pen, they do so without the admission of committing fraud and accept a penalty of 50% of the overpayment value, up to a maximum of £5,000.”
