Overpaid Pension After Death: What Happens When DWP Overpays?

What happens when the DWP overpays a pension after someone dies?

1The State Pension is paid every four weeks in arrears, not in advance — an overpayment arises because a four-week payment straddles the date of death, or because DWP had not yet been told.
2The overpayment is a debt of the estate and must be repaid before the estate is distributed to beneficiaries.
3Using the Tell Us Once service when registering a death notifies DWP (and other government departments) automatically.
4If an overpayment is found after distribution, the estate may not have funds to repay it — executors who distributed without checking may be personally liable.
5DWP will write with a demand setting out how the overpayment was worked out. If you do not give DWP the information it asks for, it says it will calculate the overpayment against the whole probate figure.

DWP (Department for Work and Pensions) overpayments after death are common. Contrary to what is often assumed, the State Pension is paid in arrears: GOV.UK says it is "usually paid every 4 weeks" and that you are "paid in arrears (for the last 4 weeks, not the coming 4 weeks)". An overpayment still arises, because a payment made after the death covers a four-week period part of which falls after it. That part is a debt of the estate and must be settled before beneficiaries are paid.

Why overpayments happen

DWP overpayments after death typically arise for two reasons:

Payments that straddle the date of death: the State Pension is paid every four weeks in arrears. A payment that arrives after the death still covers a four-week block, and the days in that block that fall after the death were not payable. Work out which period the last payment covered before accepting any figure.
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 money the estate holds but is not entitled to.

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. GOV.UK puts the risk to executors plainly: "You should not distribute the estate until you know what needs to be repaid. If you do, you may have to pay back the money yourself."

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.

Leave it where it is until DWP has confirmed the figure. Section 71ZB of the Social Security Administration Act 1992 allows recovery from the person a payment was made to, and where Universal Credit, Jobseeker's Allowance or Employment and Support Allowance was awarded to a couple jointly, an amount paid to one of them may be treated as paid to the other. An executor who distributes the estate knowing a debt is outstanding can also end up paying it personally.

If you dispute the DWP's calculation

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

Request full details of the calculation from DWP
Compare against the deceased's bank statements to identify each payment and the date it was received
Check the date of death against the advance payment dates
Write formally to DWP with your alternative calculation and supporting evidence
If you disagree with the decision itself, ask for a mandatory reconsideration within one month of the decision letter, and then, if it is still wrong, appeal to the First-tier Tribunal (Social Entitlement Chamber). The Independent Case Examiner is a different route: it looks at complaints about how DWP handled the case, not at whether the decision was right

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 Reduction (sometimes called Council Tax Support) — but this is run by the local council, not DWP, so any overpayment is recovered by the council

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.