DWP admits it has paid out £500 million to dead people in benefit payments

The Department for Work and Pensions (DWP) has inadvertently handed out £500 million in benefits to dead people. Alarmingly, the DWP has been unsuccessful in recouping millions from overpaid state pension and Pension Credit given to dead claimants.

Since the fiscal year 2019-20, records show that around £512 million was wrongly paid, with this last year alone accounting for £159 million of that sum going unclaimed. These figures came to light after a Parliamentary Question by Reform MP Rupert Lowe, who disclosed that over the past five years, pensions to the tune of £512m were paid to people who had passed away, yet only a fraction, £255m, has been reclaimed.

In remarks to The Telegraph, Mr Lowe lambasted the current protocols, pointing out that there is no legal obligation for the families of beneficiaries to return the misallocated funds, demanding a comprehensive reform. He condemned the situation saying: "This is a shocking waste that underlines the contempt with which the Government treats taxpayers' money. Why is it tolerated? " Moreover, Mr Lowe is advocating for more stringent policies, questioning: "Why is the return of this money not enforceable? ".

Highlighting concerns over potential exploitation, he continued: "This is wide open to fraud and abuse. It needs to be clamped down on as part of a wider Government effort to cut down on misspending."

Mr Lowe pressed the importance of transparency: "We must keep pushing for transparent data to uncover the true extent of the waste".

There's also been a plea for change by Great Yarmouth's MP, Andrew Western, which saw the DWP's parliamentary under-secretary acknowledging the issue. He explained: "Direct Payments made into an account after the death of a customer