Rona Wilkes said she was "shocked" at the news
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A widow who asked why her pension had been stopped was told that she was dead.
Rona Wilkes, 83, was then told she was an asylum seeker - despite being alive and well and living in the Forest of Dean, Gloucestershire.
The Department for Works and Pensions described the incident as an "unfortunate" error caused by a computer glitch.
Ms Wilkes told the BBC: "I was really shocked when they told me.
'Intolerable'
"I gave them my name and address and they said to me, 'you're not going to like this - you're supposed to have died on 1 June.'"
Age Concern described the episode as "intolerable".
Marcus Green, from the charity, said: "The computer cannot be blamed.
"Someone has put that information in and we want to know who."
An apology has been promised, but had not arrived by Thursday.