Overpaid Pension After Death: What Happens When DWP Overpays?

Why overpayments happen

DWP overpayments after death typically arise for two reasons:

1. Advance payments: State Pension and many other benefits are paid in advance (e.g., 4 weeks in advance). If the deceased dies during a payment period, the payment for days after death has already been made.
2. Notification delay: DWP may not know about the death immediately. If the Tell Us Once service was not used or DWP was not directly notified, payments may continue for days or weeks after death.

In both cases, the overpayment must be returned to DWP. It is not income of the estate — it is effectively borrowed money that must be repaid.

Notifying DWP: Tell Us Once

The quickest way to notify all relevant government departments is through the Tell Us Once service, which is available at most Registrar offices when registering a death, or online/by phone afterwards. Tell Us Once notifies DWP, HMRC, the local council, the DVLA, and other departments in a single process.

Using Tell Us Once as soon as possible after death is the most effective way to stop overpayments. However, even with prompt notification, some overpayment is almost inevitable due to advance payment processing.

Repaying the overpayment

DWP will write to the estate — usually to the address held on their records for the deceased — with a demand for repayment of any overpaid amounts. The letter will set out the amount owed and provide a reference number for payment.

The repayment is made from the estate's bank account or from liquid estate assets. It is treated as a debt of the estate and has the same priority as other unsecured debts — it must be paid before beneficiaries receive anything.

For the order of priority for debts, see our debts after death guide.

Payments into a joint account

If the State Pension or benefits were paid into a joint bank account, the surviving account holder should be aware that any overpayment received after the date of death does not belong to them. It must be returned to DWP.

Spending overpaid DWP money that was received after death can create liability for the surviving account holder — and potentially for the executor if they knew about the overpayment and failed to return it.

If you dispute the DWP's calculation

If you believe the DWP's overpayment calculation is incorrect, you can challenge it. Steps include:

1. Request full details of the calculation from DWP
2. Compare against the deceased's bank statements to identify each payment and the date it was received
3. Check the date of death against the advance payment dates
4. Write formally to DWP with your alternative calculation and supporting evidence
5. If unresolved, escalate to the Independent Case Examiner or the Parliamentary and Health Service Ombudsman

Other benefits that may be overpaid

In addition to State Pension, the following are commonly overpaid after death and may require repayment:

• Pension Credit
• Housing Benefit
• Universal Credit
• Disability Living Allowance (DLA) / Personal Independence Payment (PIP)
• Attendance Allowance
• Council Tax Support

For guidance on Universal Credit specifically, see our guide to death while receiving Universal Credit.

For the general estate administration process, see our estate administration checklist, what to do when someone dies, complete UK probate guide 2026, and applying for probate guide. For related topics, see our frozen deferred pension guide and annuity on death guide. For executor first steps, see our executor first steps guide. For collecting all estate assets, see our collecting assets after probate guide. Farra can help — get started here.