A major government review could see hundreds of thousands of state pensioners, many of them women, receive a significant financial boost. The Department for Work and Pensions (DWP) is currently identifying those who were underpaid, with some individuals due back payments of up to £3,900.
Who Is Affected by the DWP Review?
The review primarily focuses on individuals who hit State Pension age before April 2016 and who should have been receiving Pension Credit to top up their income. This often affects married women, widows, and those over the age of 80 who were unknowingly receiving an incorrect pension amount for years.
The error stems from historical issues with the old State Pension system, where entitlements based on a spouse's National Insurance contributions were not always automatically applied.
How Much Could You Be Owed?
The average payout is estimated to be around £3,900, but some pensioners could be due substantially more depending on how long the underpayment occurred. The DWP has already paid out over £1 billion in arrears to correct these mistakes, but the process is ongoing.
Key Groups Being Reviewed:
- Married Women: Those who should have qualified for a higher pension based on their husband's contribution record.
- Widows: Women who may not have had their pension increased after their husband passed away.
- Over-80s: Pensioners eligible for a top-up benefit due to their age, regardless of their National Insurance record.
What You Need to Do
While the DWP is conducting the review internally, it is crucial for pensioners to ensure they are receiving their full entitlement. The simplest way to check is by making a claim for Pension Credit, which is a separate, income-related benefit that tops up your weekly income.
Even a small award of Pension Credit can act as a 'gateway' to other vital support, including help with council tax, housing costs, and a free TV licence for those over 75.
Experts are urging all pensioners, especially those in the affected groups, to check their eligibility immediately. It is not just about a potential back payment; it's about securing your correct income for the future.
