DWP Overpaid Benefits After Death: What Families Must Know

Receiving a letter from the DWP demanding repayment of benefits paid after a loved one's death is distressing and often confusing. The letter may arrive at a time when the family is still in the early stages of grief and estate administration. Understanding why this happens, who is liable, and how to handle it correctly can save significant stress and protect the estate from paying more than is legally required.

Why benefit overpayments happen after death

Benefit overpayments after death occur primarily because of the lag between different administrative systems. When a person dies:

• The death must first be registered with the local registrar, which takes a minimum of five days and often longer
• Even if the family uses the Tell Us Once service (which simultaneously notifies multiple government departments), there is a processing delay before DWP systems are updated
• Benefits paid by regular bank transfer may have already been dispatched for the next payment period before the DWP receives the notification
• State Pension, for example, is typically paid four weeks in arrears — meaning the final payment may already include a period after death

In most cases, DWP overpayments are not caused by delay or negligence by the family. They are a structural consequence of payment systems that cannot be stopped instantaneously.

Which benefits DWP can recover from the estate

The DWP can recover overpayments of most benefits from the estate. This includes:

• State Pension: Payments made after the date of death must be returned. State Pension paid in advance (for the period after death) must be repaid.
• Universal Credit: Any payments for assessment periods ending after the date of death may be recoverable in full or in part.
• Personal Independence Payment (PIP): Payments made after death are recoverable.
• Employment and Support Allowance (ESA): Payments for periods after death are recoverable.
• Housing Benefit: Overpayments of Housing Benefit after death are normally recovered by the local authority (not DWP), but the principle is the same.
• Pension Credit: Recoverable to the extent paid after the date of death.

Whether the family is personally liable — they are not

This is the most important point for many families to understand: surviving family members are not personally liable for repaying DWP benefit overpayments made to the deceased. The debt is owed by the estate, not by individual family members.

This means:

• The DWP can only recover the overpayment from the estate's assets
• If the estate has insufficient assets to cover the overpayment, the DWP cannot pursue family members for the shortfall
• If you personally received benefits on behalf of the deceased (e.g. as an appointee), the position may be different — seek legal advice in that situation

If a DWP representative contacts you as an individual and implies that you are personally liable to repay the overpayment, this is incorrect unless you had a specific arrangement that created personal liability. Politely explain that you are dealing with the matter as part of the estate administration and that the debt will be addressed through that process.

How to dispute an overpayment figure

If you believe the DWP's overpayment figure is incorrect — perhaps because the overpayment period starts before the actual date of death, or because the DWP has included amounts that were already returned by the bank — you have the right to challenge the calculation.

Steps to dispute the figure:

• Request a breakdown: Ask the DWP to provide a detailed breakdown of the overpayment period, the benefit type, and the weekly or monthly amounts. This should be provided in writing.
• Compare with the death certificate: Check that the overpayment period starts no earlier than the day after the date of death shown on the death certificate.
• Check bank records: If any payments were automatically returned to the DWP by the bank, obtain written confirmation from the bank and deduct these from the claimed amount.
• Request a mandatory reconsideration: If you disagree with the DWP's decision on the overpayment amount, you can formally request a mandatory reconsideration within one month of the decision letter. This is a free process and requires the DWP to review its calculation.
• Appeal to a tribunal: If the mandatory reconsideration does not resolve the dispute, you can appeal to an independent Social Entitlement Chamber tribunal at no cost.

Practical steps: Tell Us Once and estate distribution timing

Prevention is the best approach. When someone dies, the family or executor should:

• Use Tell Us Once: When registering the death, ask the registrar to use the Tell Us Once service, which simultaneously notifies HMRC, DWP, the Pension Service, and multiple other government departments. This is the fastest way to notify the DWP and minimise the overpayment period.
• Contact the bank promptly: Notify the bank of the death as soon as possible so that any benefit payments received after the date of death are returned to the DWP rather than sitting in the estate account.
• Do not distribute the estate prematurely: If you have received a DWP overpayment letter or expect one, do not distribute the estate until the overpayment is settled. Executors who distribute assets and leave DWP debts unpaid can be held personally liable for the shortfall.
• Keep records: Document the date of every notification to DWP and retain copies of all correspondence. This protects you if DWP later claims the overpayment started before you notified them.

In most cases, DWP overpayment claims are settled straightforwardly as part of the estate administration process. The DWP is generally cooperative when executors act promptly and in good faith.