State Pension Back Payments: Over 130,000 People Awarded £800 Million in Compensation
In a recent update, the Department for Work and Pensions (DWP) revealed that over 130,000 individuals have been awarded a collective £800 million in state pension back payments due to historical government errors. According to the DWP, the correction exercise, which began in January 2021, identified 130,948 underpayments, with a total of £804.7 million owed to those affected.
The errors, which affected various groups, including married women, widows, and over-80s, resulted in individuals receiving lower state pension payments than they were entitled to. The DWP has been working to rectify the situation, and the recent update provides an insight into the scope of the issue. As reported by The Independent, the average payments to those owed have been £5,553 for married women, £11,725 for widows, and £2,203 for over-80s.
Those affected by the errors include married women on low state pensions whose pension was not automatically uplifted when their partner retired; people whose pension was not automatically reassessed on the death of their spouse; and over-80s whose state pension entitlements were not automatically increased. The DWP has stated that cases may be checked for more than one potential cause of error, so a claim may be counted in more than one category.
Another state pension correction exercise is looking into missing historic periods of Home Responsibilities Protection (HRP), leading to inaccurate state pension payments. Between January and September 2024, this exercise identified 5,344 underpayments, with total arrears of around £42 million. The DWP has confirmed that it will contact some married women; however, if you are a widow or above the age of 80, you should still check to see whether you are entitled to any refunds.
Pension consultants LCP have a calculator to work out if you are owed any money. You can then get in touch with the Pension Service to find out how to get your money back. Sir Steve Webb, partner at consultants LCP (Lane Clark & Peacock), commented, "The vast majority of those who lost were women, some of whom were underpaid for decades or even went to their grave never paid the right state pension. The remaining corrections need to be handled as a matter of urgency. This should never be allowed to happen again."
A DWP spokesperson said, "Our priority is ensuring pensioners receive the dignity and security they deserve in retirement and that state pension underpayment rates remain as low as possible. We have now completed the vast majority of cases in the exercise as planned with a small number of outstanding cases due to further documentation needed from the customer." As The Independent previously reported, the DWP is committed to rectifying the situation and ensuring that those affected receive the compensation they are owed.
If you suspect you may be affected by the state pension underpayments, it is essential to check your eligibility. You can use the LCP calculator to determine if you are owed any money and then contact the Pension Service to find out how to get your money back. The DWP has assured that it will continue to work to identify and correct any errors, ensuring that pensioners receive the payments they are entitled to. According to The Independent‘s source, the DWP’s efforts aim to provide a fair and secure retirement for all pensioners.
The state pension back payment exercise serves as a reminder of the importance of accurate record-keeping and timely updates to pension entitlements. As the DWP continues to work through the remaining cases, individuals are encouraged to be proactive and check their eligibility to avoid missing out on potential compensation. Further information and guidance on state pension back payments can be found on the DWP website or by contacting the Pension Service directly.
This recent development highlights the ongoing efforts of the DWP to address historical errors and ensure that pensioners receive the dignity and security they deserve in retirement. As reported by The Independent, the issue has affected thousands of individuals, and the DWP’s update provides welcome news for those who have been waiting for compensation.
Source: The Independent
