The Department for Work and Pensions (DWP) is making one-off payments to some people living overseas after identifying small underpayments. A notice from the International Pension Centre states that people who receive their pension or benefits abroad may previously have been paid slightly less than they were due.
Payments to those affected began landing in bank accounts from July 30 and will continue until August 24, 2026. The DWP said there is no need for anyone to make a claim or contact the International Pension Centre, as the money will be paid automatically to people who are due a correction.
Details of the correction exercise
The DWP has not specified which individual benefits have been affected or explained what caused the underpayments. It has also not published details of how many people are affected or the total amount being repaid.
The correction itself is small, with affected recipients receiving a one-off payment of up to £3. However, people living overseas who notice an unexpected DWP payment arriving in their account this month should be aware that it could be linked to the correction exercise.
Who could receive an additional payment?
The DWP notice on GOV.UK refers broadly to people who are paid their "pension or benefits abroad". It does not provide a breakdown of the benefits involved or suggest that everyone receiving a UK pension or benefit overseas will get additional money.
The payment is specifically intended to correct previous small underpayments, so people who received the correct amount should not expect additional cash. Those who are due money also do not need to take any action to receive it.
International Pension Centre and State Pension rules
The International Pension Centre deals with enquiries about State Pension and certain benefits for people who live outside the UK. People can contact the service about their State Pension if they live abroad, including questions about payments and changes to their circumstances.
People moving overseas should tell the relevant authorities about changes that could affect their entitlement to benefits or the amount they receive. State Pension payments can generally be made to people living overseas, although whether annual increases are applied can depend on the country where someone lives.
UK State Pension payments are increased each year for people living in the European Economic Area, Gibraltar, Switzerland and certain countries that have a relevant social security agreement with the UK. However, people living in some other countries do not receive the annual uprating and their State Pension can remain at the rate it was when they moved abroad or first became entitled to the payment.
This is commonly known as the 'frozen State Pension' policy and is separate from the small underpayments currently being corrected by the DWP. Anyone who has received the latest one-off correction does not need to contact the International Pension Centre specifically about that payment.
