A significant administrative failure at the Department for Work and Pensions (DWP) has plunged hundreds of thousands of state pensioners into debt, with the government department now demanding they repay money that was sent to them by mistake.
Scale of the DWP Overpayment Error
According to information obtained through a Freedom of Information (FOI) request by The i Paper, the DWP admitted to widespread "official errors" in state pension payments. In the 2024/25 financial year alone, these mistakes led to more than 220,000 claimants being overpaid a staggering £109 million.
Based on a sampling of claims, this leaves approximately 217,000 pensioners, primarily those born before 1959, facing an average debt of around £1,160 each. The DWP defines an "official error" overpayment as one which is not the result of a claimant's failure to disclose information, but rather a direct mistake by the department itself.
Government Response and Backlash
In response to the crisis, a DWP spokesperson pointed to the Public Authorities (Fraud, Error and Recovery) Bill, which was introduced to the House of Commons in January. The department described this as the "biggest crackdown in a generation," claiming it would prevent overpayments and save the taxpayer £1.5 billion over the next five years.
However, this has been met with fierce criticism. Dennis Reed, director of the Silver Choices charity, slammed the DWP for effectively passing the responsibility of its own poor administration onto pensioners. He stated that retirees should not be made to suffer the consequences because the department "can’t get its poor administration sorted out."
Minimal Write-Offs and New Powers
Despite the massive scale of the departmental errors, the FOI data reveals that the DWP has written off a mere 2,861 overpayments, equating to only about £3.3 million. This means the vast majority of pensioners are still being pursued for repayment.
As part of the new Bill, one controversial measure will require banks to share limited data on claimants who might be receiving overpayments. The DWP has clarified that it will not have direct access to their bank accounts. The state pension age is currently 66, meaning the retirees affected by these errors are those born before 1959 who qualify for payments.
