Family who lost a loved one demands pension payment

Relatives of relatives have been asked to repay those who have been mistakenly sent to people who have died jobs and pensions (DWPs).

DWP confirmed it did not have the legal right to recover the money, but believed that it was done to protect public funds.

Pension Minister Sir Steve Weber said the letter sent by the department to the family was not clear or voluntary.

DWP has paid incorrectly over the past five years State pension and pension points for more than £500 million in the deceasedrecovered half from bereavement relatives.

This may occur if the report of death or delays in DWP processing leads to further pension payments.

As a result, a portion of the payment may cover a period of time after the person dies.

In the recent year, DWP's salary in state pensions exceeded £144 million after DWP's death due to delays in reporting.

The department recovered £67.3 million, leaving behind £76.7 million in outstanding payments.

Sir Steve is a partner at Pensions Consultancy LCP, who uses free information requests to view copies of letters sent by DWP to family members and executors.

It shows that while the department requested a refund of the money to protect public funds, it does not state that repayment is voluntary.

The former minister said those who learned of the letter were "shocked" and did not clarify that the return of the money was not mandatory.

Sir Steve believes this turns pension repayment into a "lottery" where some people return the money while others don't.

The former Liberal Democratic politician, who served in the ministry between 2010 and 2015, warned the system disproportionately affecting the most vulnerable, who may be sad and unable to question the letter.

He called for a “consistent approach”, urging the government to ensure that the legal basis for overpayments is recovered or to stop benefiting from “people who don’t know that the system works.”

Radio 4 Money Box listener Dennis said his parents were “catched” by the program twice after their deaths.

Dennis explained that he followed the letter’s instructions to “solve all parents” affairs.

He added that he "complyed with the government and would pay" because he didn't know there was no law requiring repayment.

Another money-making listener, Jan, told the BBC that her late husband would definitely be "beside himself" if he knew he had his pension of more than £250, he would be repaid.

Young said she was confused when she received a letter from the DWP, saying her husband was overpaid because they were notified "immediately" after she passed away.

“What’s frustrating is the way it happens and (way) the whole process plays,” she said.

"Our intention is not an intention to cause trouble, but we are responsible for taxpayers to recover overpayments. We acknowledge that this is not always possible.

“While there is no legal obligation to repay this type of debt, we recognize that some people are willing to repay funds that do not have the right to do so. We provide full contact information and encourage anyone in doubt to call us.”

For more information on this story, listen to the Money Box or catch up with the BBC at 12:00 GMT on BBC Radio 4.