DWP benefit blunder sees hundreds overpaid £20k | Personal Finance | Finance

More than 500 people received £20,000 or more in benefits overpayments last year and were allowed to keep the money, new figures show.

In total, £17.5million was paid out in error, with an average of £30,674 per person being written off by the Department for Work and Pensions (DWP).

Most of these overpayments resulted from paperwork errors, but 75 cases involved fraud, totalling £2.3million.

The figures, obtained through a Freedom of Information request from The Telegraph, show the scale of overpayments, with the DWP writing off £329million last year due to errors and fraud combined.

In one notable case, an individual who owed £547,000 in overpaid benefits, accumulated through both fraud and errors, is reportedly repaying at a rate of £130 per month – a repayment plan that would take 350 years to settle.

Another case reportedly involved £491,000 in fraudulent claims, and the DWP is still tracking down the person responsible.

The report comes after several high-profile fraud cases, including a Bulgarian gang that defrauded the system of £50million in Universal Credit payments.

Joanna Marchong, from the TaxPayers’ Alliance, called the situation a “complete failure” by the DWP, criticising the department for writing off these overpayments.

She urged the Government to ensure benefits are only paid to those who truly qualify, emphasising that these mistakes are costing taxpayers millions.

A DWP spokesperson said: “This Government will not tolerate fraud or waste anywhere in public services, including in the social security system.

“We are determined to reduce fraud and error and are currently exploring all options on how best to achieve our goal.”