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DWP forced to give back up to £5,000 to people who wrongly received fines
The department is refunding affected claimants after a review found procedural errors, insufficient evidence and 197 penalties that should not have been issued.
- The DWP has refunded 197 administrative fraud penalties after a review identified cases where they were unreasonably offered to benefit claimants. The department is contacting affected customers and returning money previously accepted as alternatives to 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 further cases currently under examination.
- Administrative Penalties are offered when investigators believe sufficient evidence exists for conviction, calculated at 50% of the overpaid amount and capped at £5,000. They are charged on top of the original benefit overpayment.
- 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 2025, the DWP is introducing independent inspection of criminal investigations.
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Leaning Left0Leaning Right1Center27Last UpdatedBias Distribution96% Center
Bias Distribution
- 96% of the sources are Center
96% Center
C 96%
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