A report by the National Audit Office (NAO) has concluded that repeated human errors over many years were responsible for a scandal resulting in more than £1bn of state pensions not being paid. The errors affected 134,000 pensioners, predominantly women, due to outdated computer systems and manual processing tasks.
The issue relates to the 'old' state pension system, where married women with a poor pension record could claim a 60% basic state pension based on their husband's National Insurance contributions. The DWP is undertaking a review to trace those affected, with an estimated 40,000 women having already died. The department expects to pay £1.05bn in total, averaging £8,900 per pensioner, at a cost of £25m in staff time, with completion not expected until the end of 2023.
Among those affected is Irene Wise, 74, from Worcestershire, who received £7,334 in back payments after a two-year battle. She said women like her were 'short-changed' for years. Jan Tiernan, 81, from Fife, received £1,280 but believes she is owed more than £17,000. She described the process as 'very wearing' and said it 'takes up all your energy'.
The NAO report found that complex rules, outdated computer systems, and manual tasks made errors 'almost inevitable'. It also criticised the DWP for failing to review individual complaints to identify systemic issues, missing opportunities to detect and correct errors. Meg Hillier, chair of the Public Accounts Committee, said the DWP must provide urgent redress and prevent future errors.
A DWP spokesperson said the department is 'fully committed' to correcting historical errors and has introduced new quality control processes and improved training. Sir Steve Webb, a former pensions minister who uncovered the problems, said the department had 'let down a generation of women'.
