The DWP has come under fire for distributing £500 million in benefits to people who have passed away, with minimal recovery efforts.
London: The Department for Work and Pensions (DWP) has made headlines for paying out a staggering £500 million in benefits to people who are no longer with us. And guess what? They’ve only managed to recover a tiny fraction of that money.
So, here’s the scoop. Since the 2019-20 fiscal year, around £512 million was mistakenly handed out, with £159 million of that just last year. This shocking info came to light after a question from MP Rupert Lowe, who pointed out that only about £255 million has been recovered so far.
Lowe didn’t hold back when he spoke to The Telegraph. He slammed the system, saying it doesn’t require families to return the money that was wrongly given out. He’s calling for some serious changes to fix this mess.
He said, “This is a shocking waste that shows how little the Government cares about taxpayers’ money. Why is this allowed to happen?” He’s pushing for stricter rules, asking why returning this money isn’t mandatory.
Mr. Lowe also mentioned that this situation is ripe for fraud and abuse, urging the government to take action to prevent further waste. He wants more transparency to really understand how bad the situation is.
In response, a DWP under-secretary explained that payments made after someone’s death are only about 0.1% of total pension spending. They can ask for the money back, but it’s not legally enforceable. So far, they’ve managed to recover about half of the overpayments.
It’s worth noting that in England and Wales, deaths need to be registered within five days, while Scotland has eight days. But due to some system hiccups, the last pension payments often include amounts for time after the person has passed away.
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