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DWP refunds claimants after admitting hundreds of fraud penalty errors
The department said procedural errors and weak evidence led to refunds, while 128 cases were from 2023/24 and 69 from 2024/25.
- The DWP has refunded 197 administrative fraud penalties after a review found they were wrongly issued to benefit claimants. The department is contacting affected customers and returning money paid by those who accepted penalties instead of facing prosecution.
- Procedural errors, insufficient evidence, and circumstances not being fully considered contributed to the wrongful penalties. The Department's review examined 128 cases from 2023/24 and 69 from 2024/25, with no earlier cases included in the assessment.
- Administrative Penalties are calculated at 50% of the overpaid amount, capped at £5,000, and charged on top of the original benefit. They are offered when investigators believe sufficient evidence exists for a realistic prospect of conviction.
- A DWP spokesperson said the department has "put this right by removing and refunding those penalties," and is strengthening processes to ensure decisions are made consistently and appropriately in future.
- Importantly, having an administrative penalty removed does not cancel any underlying benefit overpayment; any outstanding amount still requires repayment. Under the Public Authorities Act, the DWP is introducing independent inspection of criminal investigations.
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Total News Sources16
Leaning Left0Leaning Right1Center14Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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