DWP hands out £12.7m in staff bonuses amid £9.5bn benefit overpayments

The Department for Work and Pensions (DWP) has paid out £12.7 million in bonuses to its staff, funded by taxpayers. This comes as the department reported nearly £9.5 billion in overpaid benefits last year due to errors. The figures have raised questions about spending priorities within the UK's largest government department.

The DWP, which employs over 90,000 people, distributed benefits to 86,757 junior staff members. On average, each received £141, well below the £1,200 initially reported for 2024. Meanwhile, nearly 200 senior officials took home an average of £2,122 each. Three top executives were awarded benefits ranging from £10,000 to £15,000.

The department also spent an extra £4.4 million on reward vouchers for employees. These payments were justified as part of efforts to match private sector remuneration, where average salaries sit at £35,400, including benefits of around £2,100.

Despite these incentives, the DWP admitted to overpaying £9.5 billion in benefits last year. The figure highlights ongoing challenges in managing welfare payments accurately.

The £12.7 million benefit scheme for DWP staff contrasts sharply with the department's £9.5 billion overpayment error. While the benefits aim to retain talent, the financial missteps have drawn scrutiny. Taxpayers continue to fund both the rewards and the cost of correcting mistakes.