The Department for Work and Pensions (DWP) has mistakenly paid out £850 million in benefits to claimants after their deaths, according to a report. The overpayments occurred when death notifications were received too late to stop payments, or when benefits were due for payment at the time of notification.
The errors, which have totalled 2.6 million since 2021, also include overpayments to claimants who entered hospital or care homes where care costs are covered by local authorities or the NHS. Disability benefits such as Personal Independence Payment (PIP) are typically suspended after 28 days in hospital.
Less than half of the £850 million has been recovered, the Telegraph investigation found. A DWP spokesperson stated: 'It is DWP policy to recover all debt where it is reasonable and cost effective to do so.' The department urged bereaved families to use the 'Tell us Once' service to notify them promptly.
The revelation comes as the DWP gains new powers under the Public Authorities (Fraud, Error and Recovery) Act 2025 to check bank accounts for benefit eligibility. The DWP can request financial institutions to verify savings or time spent abroad, but cannot access accounts directly or view transactions in real time. In some cases, the DWP may recover debts directly from bank accounts without a court order.
