Sat, 08 Feb 2025

Sat, 08 Feb 2025 Bereaved families asked to return pension overpayments

A former pensions minister says the DWP does not make it clear to families the repayments are voluntary.

* The Department for Work and Pensions (DWP) has been asking bereaved relatives to repay state pensions that were wrongly sent to people who have died.
* Despite having no legal right to reclaim the money, the DWP argues that it does so to protect public funds.
* Over the past five years, £500m was mistakenly paid in state pensions and pension credits to the deceased, with about half recovered from bereaved relatives.
* In the latest year, £144m was overpaid due to delayed reporting of deaths, with £67.3m recovered, leaving £76.7m unrecovered.
* Former Pensions Minister Sir Steve Webb has criticized the DWP for not making it clear that repayment is voluntary in the letters sent to families.
* The system disproportionately affects vulnerable people who may be grieving and unable to question the letter.
* The DWP says it is not intended to cause distress, but has a responsibility to taxpayers to recover overpayments.
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