The government has confirmed that people with serious or terminal illnesses may be forced to repay benefit overpayments – even when mistakes are made by officials.

The admission came in a written statement to Parliament by Department for Work and Pensions (DWP) minister Andrew Western.

Benefit overpayments are a contentious issue with the DWP recovering £2.7 billion in overpaid benefits in 2023-24 – a sum that includes payments mistakenly made to claimants.

Critics argue that some of the most vulnerable, including the terminally ill, face undue stress from repayment demands.

And with thousands of terminally ill claimants potentially affected each year, charities warn that even small repayment demands can be “devastating” for families already dealing with a medical crisis.

As a result, campaigners have long called for a clearer policy to protect those in serious ill-health.

Liberal Democrat MP Zöe Franklin, representing Guildford, challenged the minister to say what the DWP is doing protect those with terminal illnesses are not unfairly pursued for repayments.

In a written question, the MP asked: “What steps her Department is taking to ensure that people with a serious or terminal diagnosis are not required to repay benefit overpayments that arose due to official error, particularly in cases in which the claimant notified the Department promptly that they believed they were receiving benefits to which they were not entitled.”

In response, Mr Western said the Department “will always strive to set affordable and sustainable repayment plans” and encouraged claimants to make contact if they cannot afford the proposed rate.

He added: “People with a serious or terminal diagnosis can request that DWP cease recovery of their overpayment. This is a waiver request and details for claimants can be found in our Benefit overpayment recovery guide.”

Claimants who believe they have been wrongly asked to repay can also request a mandatory reconsideration or appeal the decision. Guidance on these rights is available on the government website.

The DWP insists that all staff are trained to support vulnerable customers and that repayment plans are designed to be “affordable and sustainable.”