DWP no longer forced to pay out unneeded sickness benefits as loophole closed

As revealed by an investigation from The Times, the issue arose from delays in reassessing people receiving sickness-related benefits, where caimants who had recovered would have to wait for a formal Work Capability Assessment.

The changes mean anyone receiving benefits they are no longer entitled to must notify the DWP of a change in their circumstances.

Continuing to receive payments without entitlement can result in overpayments that must be repaid, as well as potential financial penalties or a fraud investigation, depending on the circumstances.

One case highlighted by The Times during the newspaper's investigation involved Gavin, a taxi driver who applied for long-term sickness benefits after undergoing open-heart surgery.

After recovering, Gavin contacted the DWP to explain that he felt well enough to return to work and not longer needed to rely on the payments.

However, he said he was told his benefit award could not be changed until he had undergone another assessment.

Despite informing the department that his circumstances had changed, he continued receiving the payments for three years.

“I was told that they couldn't change themselves, they couldn't alter my award claim. I had to wait until I was reassessed which I found pretty peculiar. There was no date,” Gavin said.

He also told reporters he felt he had no choice but to continue accepting the money while waiting for the department to act.

Gavin had previously discussed his experience in a Channel 4 Dispatches documentary, also explaining there that he had contacted the DWP after recovering from his heart operation because he believed he was ready to work again.

The delays have been linked to the suspension of reassessments during the Covid-19 lockdown, after which the process was not fully restored.

According to figures, around 1.8 million claimants were waiting for reassessments, with the average delay standing at two years. One claimant was even said to have waited 16 years.

The backlog has raised concerns about the administration of sickness-related benefits, particularly for people whose health or ability to work has changed since their original assessment.

The DWP previously acknowledged problems with the Work Capability Assessment system, and said it intends to reform the wider health and disability benefits system.

A department spokesman said: “We've been clear that the Work Capability Assessment is not working.

“That's why we will bring forward proposals for reforming the health and disability benefits system as part of a proper plan to genuinely support disabled people into work and, in turn, bring down the benefits bill.”