The Department for Work and Pensions (DWP) has uncovered a major issue affecting thousands of parents, predominantly women, who may have been underpaid their state pensions due to historical errors.
Who Is Affected?
The problem primarily impacts parents, especially mothers, who claimed Child Benefit before the year 2000. Many were incorrectly assessed under outdated rules, leading to reduced National Insurance credits and, consequently, lower pension payments.
How Much Money Is Involved?
Estimates suggest the average underpayment could be around £5,000 per person, with some cases potentially reaching tens of thousands. The total cost to rectify these errors could exceed £1 billion.
What Should You Do?
If you believe you may be affected:
- Check your National Insurance record for gaps
- Review your pension statements carefully
- Contact the DWP if you suspect an underpayment
DWP Response
The department has stated it is working to identify and contact all affected individuals, but experts warn the process could take years. Campaigners are urging the government to accelerate compensation payments.
This issue highlights ongoing concerns about pension equality and the financial impact on women who took time out of work to raise children.
