Up to 800,000 people may have received inaccurate State Pension forecasts after errors in an online service provided misleading information about their expected retirement income. The issue came under scrutiny during a Work and Pensions Committee evidence session on November 4, where senior officials from the Department for Work and Pensions (DWP) were questioned about the number of people affected and whether compensation could be available.
MPs Demand Answers on Forecast Errors
The cross-party group of MPs sought clarity on the scale of the problem, which affected some people who had previously contracted out of the Additional State Pension. Incorrect information appeared in forecasts accessed between 2016 and 2021.
The errors did not affect the actual calculation of State Pension entitlement, but could have influenced retirement planning for people relying on the forecasts to understand their future income.
DWP Officials Questioned
Labour MP Liz Twist challenged DWP officials over the UK Government's initial worst-case estimate of 800,000 affected customers. She asked whether the department had established how many people received incorrect forecasts and the extent of the inaccuracies.
Neil Couling, DWP Director General for Services and Fraud, responded: "I do not think that any of us can answer that question because the forecasts are the responsibility of HMRC (HM Revenue and Customs)."
He added: "I think that this is a lot smaller than that, but these are not things that we have direct responsibility for." When pressed on whether the DWP had the numbers, Mr Couling confirmed it did not.
Committee Seeks Updated Information
Committee members subsequently requested updated information from HMRC, with DWP Permanent Secretary Dame Sarah Healey agreeing to seek the details and pass them to MPs. Ms Twist also asked whether complaints arising from incorrect forecasts could result in compensation, but the DWP officials did not provide an answer.
The UK Government has previously confirmed that the problem occurred when the online Check Your State Pension forecast service failed to account correctly for some incomplete National Insurance records involving contracted-out employment. People who contracted out of the Additional State Pension generally paid reduced National Insurance contributions or had contributions redirected towards a workplace or private pension.
Fixes Implemented Over Time
This can affect the calculation of their starting amount under the New State Pension system introduced in April 2016. The UK Government confirmed in its response to the Committee's earlier recommendations that fixes were introduced progressively.
An initial correction was implemented in 2021, with further improvements in February 2024 and a final enhancement in February 2026 covering customers regardless of when they reach State Pension age. HMRC has been monitoring the service since February 2026 and is confident that the correction is working.
However, the Parliamentary and Health Service Ombudsman (PHSO) has been investigating the issue, and MPs have called for greater transparency about its impact. The Committee previously recommended that the DWP establish how many people were affected, set out what had gone wrong, outline compensation arrangements and explain how affected individuals would be contacted.
People approaching retirement can check their State Pension forecast through GOV.UK to see their estimated entitlement and National Insurance record. The service can also show whether someone may be able to increase their future State Pension through additional qualifying years.
