Benefit claimants owe almost £2bn to the government

BENEFIT claimants currently owe the Government almost £2bn, Commons watchdogs reported today.

The public accounts committee (PAC) warned as total overpayments are growing daily, much of the cash may have to be written off unless recovery procedures are boosted.

The MPs found almost 70% of the £1.85bn outstanding is due to incorrectly-paid income support.

Merseyside, with its higher-than-average claimant rates, is one region where total recovery of debt would be impossible.

Southport MP John Pugh, a PAC member, said: “The Department of Work and Pensions (DWP) needs to equip itself with more up-to-date methods.”

Around £9m in overpayments below £65 are written off annually because it would cost more to recover it.

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