Criticism over letters asking bereaved relatives to return pension overpayments Letters sent to bereaved relatives asking them to return pension payments made in error do not make clear it is optional, a former pensions minister has said.
Because the DWP makes pension payments four weeks in arrears, payments can be made that relate to a period after the recipient’s death, Sir Steve told the PA news agency.
Sir Steve Webb said the letters from the Department for Work and Pensions (DWP) do not make clear that repaying the money is voluntary.
Though they are treated as non-recoverable and are not enforceable by law, the DWP can request the money back as a voluntary payment and says it has a responsibility to taxpayers to attempt to claim it back.
Sir Steve, now a partner at pension consultants LCP (Lane Clark & Peacock), sent a freedom of information request to obtain a copy of the letter that is sent to reclaim overpayments.
