Tens of thousands of people could owe the Department for Work and Pensions (DWP) money after an error, it has been reported.
The Government now plans to start recovering cash from European Union citizens after the Independent Monitoring Authority (IMA) warned there could be 140,000 people accidentally given handouts.
It has come about after Brexit, as EU citizens living in the UK could previously get state support, My London reports.
READ MORE: DWP benefits and cost of living payments in February
However, these claimants were later asked to apply through the EU settled status scheme. Between June 2021 and April 2022 141,000 people who applied for the scheme were refused, but the Home Office did not update its eVisas database leaving them marked as "pending", PoliticsHome reports.
This meant thousands of people who did not immediately appeal the government's decision kept getting benefits they were not entitled to. The Home Office says the decision to leave people's status as "pending" was a requirement of the Brexit withdrawal agreement. The government could demand the money back or choose not to pursue them.
The Home Office updated "refused" statuses on the eVisa database on January 18 but the department, led by Suella Braverman, has not confirmed how much money was wrongly paid out or how many people were impacted.
A Home Office spokesperson told PoliticsHome: "The online digital status for some EU Settlement Scheme applicants who were refused status has been updated in line with the decision taken on their application, which had already been communicated to the individuals concerned.
“We are working across government and with the EU and member states to understand any further implications and to ensure the situation is managed quickly and pragmatically.”
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