Government cannot recover erroneous benefit overpayments

An appeal by the Department for Work and Pensions (DWP) was rejected by the Supreme Court meaning the state is liable for the costs of any mistakes in benefit calculations it makes. The decision applies to benefits administered by the DWP (including incapacity benefit, Employment and Support Allowance and Disability Living Allowance) and child benefit and guardian's allowance. It does not cover housing benefit or tax credits cases. The result is likely to come as a blow to government plans to slash welfare spending. Figures from the DWP state that at least £1.1bn a year is paid ...