A significant administrative failure within the Department for Work and Pensions (DWP) could mean that nearly half a million UK retirees, primarily women, have been shortchanged on their State Pension payments for years.
The error centres around the old State Pension system and affects specific groups who may have been unaware they were entitled to higher payments. This is not a new issue, but the scale of the potential underpayment is coming into sharper focus.
Who Is Most Likely Affected?
Experts have identified three key groups at high risk of having been underpaid:
- Married women: Those who hit State Pension age before April 2016 and whose husband turned 65 on or after March 17, 2008, may be entitled to an uplift based on their husband's National Insurance contributions.
- Widows: Women whose husband died after they reached State Pension age may not have had their pension increased to include amounts they should have inherited from their late spouse.
- Those over 80: Pensioners who qualified for the 'over-80' pension but did not automatically receive it, often because they had little or other State Pension.
The average back payment is estimated to be around £5,000, but some individuals could be owed sums stretching into the tens of thousands, representing a life-changing amount of money for those on a fixed income.
Why Did This Happen?
The problem is largely linked to the complex transition from the old, contribution-based system to the new State Pension introduced in 2016. The process of manually assessing claims, particularly for dependent entitlements, was prone to human error and outdated IT systems. Many eligible individuals were never properly informed that they needed to make a separate claim for these increases.
What Should You Do?
The DWP has a correction programme in place and is reviewing cases. However, the process is slow. If you believe you or a family member may be affected, you should not wait to be contacted.
You can contact the DWP's Pension Service directly to inquire about your specific situation. Be prepared to provide your National Insurance number and details about your marital status and pension history.
This unfolding situation highlights the critical importance for all retirees and those approaching retirement to thoroughly understand their State Pension entitlement and proactively ensure they are receiving every penny they are owed.
