The Department for Work and Pensions (DWP) last year paid 73 million in benefits to dead people - mostly in pension payments.

More than a third of this (37%) equating £27 million had to be written off and the rest had to be taken back from bereaved families.

Theresa May, shadow secretary of state for work and pensions, called the DWP the "department of waste" and said: "It is absolutely ridiculous thousands of people struggling on low incomes are missing out on the benefits they are entitled to, while the Government is paying out millions each year to dead people."

She also criticised pensions secretary James Purnell, saying: "James Purnell is meant to be focusing on getting people back to work. Instead he cannot even get his own house in order. What signal does this send out?"

The DWP said it is making improvements to the system.