Sammy
The Department for Work and Pensions (DWP) has uncovered widespread State Pension underpayments, impacting over 131,000 pensioners and totaling more than £800 million in arrears. Some individuals are owed as much as £11,725.
These underpayments stem from administrative oversights across two correction initiatives, both aiming to rectify historical pension miscalculations.
DWP Correction Exercises: What You Need to Know
The DWP has implemented two major correction exercises to address underpayments to various groups of pensioners.
Correction Exercise 1: Launched in January 2021
This initiative targets three key groups:
1. Married Women (Category BL)
- Women whose State Pension was not automatically increased when their husbands reached retirement age.
- These women were entitled to 60% of their husband’s basic State Pension, yet many were left receiving far less.
2. Widowed Pensioners
- Widows whose State Pension wasn’t reassessed after their spouse’s death.
- In many cases, they were eligible for higher payments by inheriting part of their partner’s pension.
3. Individuals Over 80 (Category D)
- Pensioners over 80 whose pensions were not adjusted as per entitlement, resulting in them receiving lower-than-expected amounts.
The DWP started investigating these discrepancies in January 2021. So far, £804.7 million has been paid out in backdated pension payments.
Correction Exercise 2: Launched in January 2024
This correction focuses on:
Mothers Who Claimed Child Benefit Before 2000
- Many women are missing Home Responsibilities Protection (HRP) credits on their National Insurance records.
- HRP was crucial in securing a full State Pension, and missing entries have resulted in reduced payments.
- These underpayments are now being reviewed and corrected by the DWP.
Who Is Affected and How Much Could You Be Owed?
The DWP has reviewed over 131,000 cases, identifying large numbers of underpaid pensioners across different categories:
| Pensioner Group | Cases Identified | Average Arrears |
|---|---|---|
| Widowed Individuals | 50,261 | £11,725 |
| Married Women (Category BL) | 47,004 | £5,553 |
| Over 80s (Category D) | 33,683 | £2,203 |
In some instances, overpayments of other benefits, such as Pension Credit, were also discovered, although these are less common.
Eligibility Overview: Are You in One of These Groups?
1. Married Women
- Born before April 6, 1953
- May not have received 60% of their husband’s State Pension
2. Widowed Pensioners
- May have been eligible for pension inheritance but didn’t receive it
3. Over-80 Pensioners
- May not have received a Category D top-up after turning 80
The DWP’s review into State Pension errors highlights the importance of accurate National Insurance records and pension assessments. If you are a widow, married woman, or aged over 80, it is crucial to verify your pension details. With average back payments ranging from £2,203 to over £11,000, checking your eligibility could result in a significant financial uplift.
FAQs
How do I find out if I’m owed money from the DWP?
You can contact the Pension Service or check your State Pension summary online to review your current and historical payments.
Will I be contacted automatically if I’m affected?
In most cases, yes. The DWP is actively reaching out to individuals whose records show underpayments. However, if you believe you’re eligible and haven’t been contacted, you should get in touch proactively.
What should I do if I was overpaid another benefit like Pension Credit?
The DWP has stated that overpayments will not be reclaimed, so you will not be penalized for errors made by the department.