The DWP mistakenly paid out £850 million in benefits to individuals who had passed away due to various circumstances such as delayed death notifications or benefits being due at the time of death. Overpayments can also occur when claimants are hospitalized, leading to local authorities or the NHS covering care costs, resulting in disability payments like PIP being stopped or suspended after 28 days.
The types of benefits overpaid, including mental health, out-of-work benefits, state pensions, and others, remain unspecified. An investigation unveiled 2.6 million errors since 2021, with less than half of the total amount recovered so far.
Responding to the issue, a DWP spokesperson mentioned their commitment to recovering debts reasonably and efficiently. The “Tell us Once” service facilitates the notification process for bereaved families to inform relevant authorities swiftly, ensuring benefits reach only eligible recipients.
Recent developments have empowered the DWP with enhanced bank account monitoring capabilities under the Public Authorities (Fraud, Error and Recovery) Act 2025. Financial institutions are now obligated to verify claimants’ eligibility by checking details like savings and overseas activities, aligning with benefit-specific criteria such as savings limits for Universal Credit and travel restrictions for Pension Credit recipients.
Notably, the DWP cannot access bank accounts directly or monitor daily transactions in real-time. Suspicious activities flagged by banks trigger thorough DWP investigations, emphasizing that benefit decisions won’t solely rely on bank data. Additionally, the DWP can recover owed funds directly from claimants’ bank accounts in certain situations, without requiring a court order.