State Pension Scandal: DWP Underpaid £805m to Thousands of Britons
A shocking revelation has emerged that the Department for Work and Pensions (DWP) has underpaid a staggering £805m in state pension payments to thousands of Britons. According to the latest figures from the DWP, 130,948 underpayments were identified as of March 31, with a total of £805m owed to pensioners as part of a checking process which began in 2021. This scandal has left many retirees facing financial uncertainty, and it is essential to understand who is eligible and how to claim the owed payments.
The underpayment error, described as "one of the biggest benefit scandals of modern times" by Rachel Vahey, head of public policy at AJ Bell, has affected various groups of people. As reported by GB News, married women on low state pensions, whose pension was not automatically uplifted when their partner retired, are owed an estimated average of £5,553. Additionally, people whose pension was not automatically reassessed on the death of their spouse are owed an estimated average of £11,725. Over-80s whose state pension entitlements were not automatically increased are owed an estimated average of £2,203.
GB News has learned that the DWP has "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". However, consultancy firm LCP notes that some married women, widows, and pensioners over the age of 80 should receive any payments without having to take action. On the other hand, other groups, such as married women whose husband turned 65 before March 17, 2008, and women who divorced after pension age, will still need to contact the DWP if they want their pension to be reassessed.
To determine how much they could be entitled to, individuals can use a calculator provided by LCP on their website. According to GB News, Britons who think they have been underpaid should contact the Government’s pension service directly. Sir Steve Webb, a partner at LCP, stressed that "the remaining corrections need to be handled as a matter of urgency. This should never be allowed to happen again."
The DWP has stated that "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." However, many critics argue that the department has taken too long to rectify the situation, leaving thousands of pensioners facing financial hardship.
In conclusion, the state pension underpayment scandal has left many Britons facing financial uncertainty. It is essential for those affected to understand their eligibility and take necessary steps to claim their owed payments. As GB News reports, the DWP must handle the remaining corrections with urgency to ensure that pensioners receive the dignity and security they deserve in retirement.
Rachel Vahey, the head of public policy at AJ Bell, described the DWP’s error as "one of the biggest benefit scandals of modern times". She added: "It is absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible".
The DWP’s underpayment error has significant implications for the affected groups, and it is crucial that they receive the owed payments promptly. GB News will continue to provide updates on this developing story as more information becomes available.
For more information on the state pension underpayment scandal, visit www.gbnews.com.
Sources:
https://www.gbnews.com/money/state-pension-scandal-dwp-underpaid
