DWP PSCS Payment After Death: Who Gets It?

When someone who received government benefits or compensation passes away, questions often arise about what happens to any unpaid money. The DWP PSCS Payment After Death refers to any outstanding compensation or corrective payments owed by the Department for Work and Pensions (DWP) under the Public Service Compensation Scheme (PSCS).

This scheme ensures that benefit recipients, pensioners, or their estates receive money rightfully owed to them — even after the claimant’s death. And now, let’s get it into the blog.

What Is the DWP PSCS Payment After Death and How Does It Work?

The DWP PSCS Payment After Death refers to any outstanding or due payments from the Department for Work and Pensions (DWP) under the Public Service Compensation Scheme (PSCS) that need to be processed when a claimant passes away.

The PSCS provides compensation payments to individuals who may have experienced delays, administrative errors, or underpayments related to benefits or pensions. When a claimant dies, these payments don’t disappear — they can still be claimed by the estate or next of kin.

According to the UK Government, the DWP ensures that “any payment due to the deceased is paid to the rightful person or estate, once sufficient proof and documentation have been provided.” (Source: gov.uk)

In simpler terms, if someone was owed money by DWP at the time of their death, the PSCS payment is issued to the person handling their estate, such as an executor, administrator, or next of kin.

Who Can Claim a DWP PSCS Payment After Death?

The eligibility to claim a DWP PSCS payment after someone’s death depends on the claimant’s situation and the type of benefit or compensation involved.

Who Is Eligible to Receive the Payment?

The DWP allows the following individuals to make a claim:

• Executor or Administrator named in the will

• Next of kin, if no executor exists

• Solicitor or legal representative managing the estate

• Appointee previously managing the deceased’s benefits

If there’s no will or estate, DWP will consider the Intestacy Rules under UK law to determine who is legally entitled to the payment.

What Documents Are Needed to Claim?

To process the claim efficiently, the claimant should provide:

• Death certificate (original or certified copy)

• Proof of identity of the claimant

• Proof of relationship (if next of kin)

• Bank details for payment transfer

• Official correspondence or reference number from DWP

💡 Tip: Always include the deceased’s National Insurance number in correspondence with DWP. It helps them trace the case quickly.

How Do You Claim a DWP PSCS Payment After Death?

Claiming a DWP PSCS payment after death involves a straightforward but legally guided process.

What Are the Steps to Submit a Claim?

1. Notify the DWP of the death

   • You can use the government’s Tell Us Once service through gov.uk, which automatically informs multiple departments, including DWP.

2. Wait for DWP’s confirmation

   • They will review the deceased’s records and identify any outstanding PSCS payments.

3. Receive claim forms or instructions

   • DWP sends a form or letter explaining how to claim the due payment.

4. Submit all required documents

   • Include proof of death, ID, and any required bank or solicitor details.

5. Payment review and release

   • Once verified, DWP issues payment to the approved person or estate.

Comparison Table: DWP PSCS Payment Process After Death

⏳ Note: Timelines may vary depending on case complexity and document verification.

What Happens If a DWP PSCS Payment Was Made After Death?

Sometimes, the DWP may issue a payment after the date of death, usually due to system timing or delays.

How Does DWP Handle Overpayments or Errors?

If a PSCS payment or benefit was made after the person died:

• DWP may request repayment from the estate.

• If the payment was part of the PSCS compensation, it’s reviewed before any refund is requested.

• Executors should not spend any funds received until DWP confirms they’re entitled to keep it.

How Long Does It Take to Receive a DWP PSCS Payment After Death?

What Factors Affect the Processing Time?

Timing depends on multiple factors:

• Type of claim (benefit arrears, compensation, or pension-related)

• Completeness of documentation

• DWP case load and verification checks

Typically, it takes between 6 to 12 weeks for full settlement, though complex estates can take longer.

To speed up the process:

• Use registered post for all documents

• Follow up with DWP after 4 weeks

• Keep records of all correspondence and reference numbers

Are DWP PSCS Payments After Death Taxable or Affect the Estate?

Do Heirs or Estates Pay Tax on DWP PSCS Payments?

In most cases, PSCS payments are treated as arrears or compensation and are not taxable.
However:

• If the payment forms part of pension arrears, it may need to be included in the estate’s tax calculation.

• Executors should declare any payments to HMRC when filing estate accounts.

You can check HMRC’s guidance on “Tax on payments after death” at gov.uk/inheritance-tax.

What Should Executors and Families Avoid During the Claim?

Common mistakes include:

• Sending photocopies instead of certified documents

• Forgetting to add National Insurance number

• Failing to notify DWP through the Tell Us Once service

• Ignoring follow-up letters from DWP

By staying proactive and organised, claimants can prevent unnecessary delays.

Conclusion

The DWP PSCS Payment After Death ensures that any owed or delayed public service compensation is rightfully paid to the deceased’s estate or beneficiaries.
The key takeaways:

• Notify DWP promptly using Tell Us Once.

• Gather and submit all documents early.

• Check DWP communications carefully before distributing funds.

• Consult legal or financial experts if unsure about taxation or eligibility.

Ultimately, the process may seem bureaucratic, but it exists to protect the rights of both claimants and their families.

FAQs

1. What does PSCS stand for in DWP?

PSCS stands for Public Service Compensation Scheme, which handles compensation or corrective payments for underpaid benefits or administrative errors.

2. Who gets DWP payment after death?

Usually, the executor, next of kin, or legal representative receives the payment on behalf of the deceased’s estate.

3. How do I contact DWP about a payment after death?

You can call the Bereavement Service helpline at 0800 731 0469 or use the Tell Us Once service on gov.uk.

4. How long does DWP take to pay after someone dies?

On average, payments are processed within 6–12 weeks, depending on documentation and case complexity.

5. Can I claim DWP compensation for a deceased person?

Yes, if DWP owed money at the time of death, you can submit a claim as the executor, next of kin, or authorised representative.