Bereaved families asked to return pension overpayments
Published On Feb 7, 2025, 11:45 PM
The Department for Work and Pensions (DWP) in the UK has been demanding repayments from bereaved families for state pensions incorrectly sent to deceased individuals. Over the past five years, the DWP has issued over £500 million in overpayments, recovering only half of that. Critics, including former Pensions Minister Sir Steve Webb, criticize the lack of clarity in the DWP's communications, stating that families are not informed that repayment is voluntary and that the process can disproportionately affect vulnerable individuals. Sir Steve calls for clearer guidelines and a consistent approach to prevent distress to grieving families.
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The situation underscores operational inefficiencies at the DWP, which may lead to increased public scrutiny and potential reforms. Investors in companies related to public sector consulting or financial services might find opportunities as reforms take place.
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