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Benefits claimants in UK were underpaid by record £3.3bn last year

National Audit Office criticises Department for Work and Pensions over its ‘material fraud and error’

Thousands of people in the UK could receive a payout after official figures revealed that benefit claimants were underpaid by £3.3bn last year, the highest level on record.

The Department for Work and Pensions also admitted that as many as 330,000 people, some of whom have since died, may have missed out on as much as £1.5bn of valuable state pension entitlement – a disclosure that prompted some commentators to warn of a new scandal. Steve Webb, the former pensions minister, said: “The scale of these errors is huge.”

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