Spending watchdog tears into Government after sick and disabled lose thousands in benefits
2 min read
Official spending watchdogs have blasted the Government for taking too long to spot a benefits error that cost claimants thousands of pounds.
Some 70,000 people which chronic illnesses or disabilities missed out on payments for years due to a glitch when they were transferred from one allowance to another. A small number are owed up to £20,000.
The Department of Work and Pensions is set to shell out some £680m in one-off back payments by 2023 - pushing the welfare budget up by £10m a year.
Another £14m will be spent getting civil servants to double check another 300,000 claims.
Some sick and disabled people who faced errors from before October 2014 will not even get the money back due to legal reasons.
Tens of thousands of people slipped through the net of a national insurance error in 2011 when they were switched from other benefits to Employment and Support Allowance.
Although the DWP spotted a number of cases they failed to realise it was a wider issue, the National Audit Office said.
Only after several years and two tribunal cases did the Government manage to identify that claimants were being paid less than they were entitled to.
NAO boss Sir Amyas Morse said: “The facts of this case are that tens of thousands of people, most of whom have severely limiting disabilities and illnesses, have been underpaid by thousands of pounds each, while the department for several years failed to get a proper grip on the problem.”
The DWP said: “We’re well under way with our plan to identify and repay people affected by this issue, and payments have already started. We’re committed to ensuring people get what they are entitled to as quickly as possible.”
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