DWP tells UK households ‘you don’t have to pay it | European Markets

UK households have been informed they’ve no legal obligation to pay money back after a Division for Work and Pensions (DWP) mistake.

The DWP overpaid more than £500 million of State Pension and Pension Credit score funds into accounts of people who had died over 5 years, and recovered round half of it.

These direct fee after death (DPAD) overpayments occur if the DWP isn’t notified of a death in time to stop a fee.

Whereas the DWP can recuperate overpayments from a particular person’s property and can write a letter asking for the money back, these funds are literally handled as non-recoverable and are usually not enforceable by the law.

The DWP can request the money back as a voluntary fee and says it has a accountability to attempt to assert it back, it’s elective as as to if households select to ship the money back.

Former pensions minister Sir Steve Webb has criticised the letters despatched to bereaved kin asking them to return pension funds made in error, saying the letters don’t clarify that reimbursement is voluntary.

The overpayments happen as a result of pension funds are made 4 weeks in arrears, which means funds will be made that relate to a period after a particular person’s death.

Sir Steve, now a companion at pension consultants Lane Clark & Peacock, despatched a freedom of info request to acquire a copy of the letter despatched by the DWP to reclaim funds that had been made in error.

He discovered that it doesn’t clarify anyplace within the letter that the repayments are voluntary, which he says intimidates or frightens people who’ve simply been bereaved into sending money back “because they think they have to”.

He mentioned: “This kind of halfway house of… we know that it’s not mandatory when we send the letters, but we’re not going to tell you… that doesn’t seem right to me.”

On the federal government’s web site, it states: “The Department for Work and Pensions (DWP) can recover benefit overpayments from a person’s estate. An overpayment could have happened because, for example, the person who died:

• had more savings than they declared in their benefit claim

• had not declared an income

• was in hospital or a nursing home and had not told DWP

“If you’re dealing with the estate, DWP will write to you once probate has been granted to ask for the information they need. If there has been an overpayment, DWP will write to you asking for the money back from the estate.

“They will tell you how any overpayment has been worked out and explain why it happened. They will also tell you how to pay. If you need to discuss your payment, or setting up a repayment plan, call DWP’s Debt Management Recovery from Estates. The number is on the letter.”

The DWP has since acknowledged that there’s no legal obligation to repay such overpayments however mentioned it has a accountability to attempt to recuperate the funds.

A DWP spokesperson mentioned: “It is not our intention to cause distress, however, we have a responsibility to taxpayers to recover overpayments. We acknowledge this is not always possible.

“Whilst there is no legal obligation to repay a debt of this type, we recognise some people will be willing to repay money to which there was no entitlement. We provide full contact details and encourage anyone with concerns to call us.”

It’s understood that if the DWP doesn’t obtain a response then no additional letters are issued requesting fee and that an initial restoration is tried from the bank the place the fee was made or from the deceased’s subsequent of kin.