Thousands of pensioners in the UK could be entitled to a £12,000 back payment from the Department for Work and Pensions (DWP) due to historical state pension underpayments.
If you’re wondering whether you or a loved one qualify, this guide will help you understand the eligibility criteria, how to check your entitlement, and how to claim the money owed.
Why Is the DWP Issuing Back Payments?
For years, administrative errors and outdated systems have led to thousands of pensioners receiving less than their rightful state pension.
In 2021, the Legal Entitlements and Administrative Practices (LEAP) exercise was launched to identify and correct these underpayments.
| Category | Details |
|---|---|
| Affected Groups | Married women, widows, over-80 pensioners |
| Compensation Amount | Up to £12,000 |
| Main Cause | Errors in pension calculations |
| Deadline for Reviews | End of 2024 |
| How to Check Eligibility | Contact DWP Pension Service |
The £12,000 compensation plan is designed to rectify these errors and ensure affected pensioners receive the money they are owed.
Who Is Eligible for the £12,000 DWP Back Payment?
The DWP is focusing on three main groups of pensioners who may have been underpaid.
1. Married Women and Civil Partners
Many married women were entitled to higher pensions based on their spouse’s National Insurance (NI) contributions but did not receive the correct amount.
- Before March 2008, women had to manually apply for their pension increase. Many were never informed about this, leading to underpayments.
- After March 2008, pension increases were supposed to be automatic, but the system failed in many cases.
Example:
Mrs. Smith was receiving £85 per week instead of £120 based on her husband’s NI contributions. She is now eligible for thousands in back payments.
Action: Check your pension statements for discrepancies.
2. Widowed Pensioners
Widows are entitled to an increased pension based on their late spouse’s full NI record, but many were never given this increase.
Signs You May Be Owed Compensation:
- Your pension did not increase after your spouse passed away.
- You suspect an incorrect pension calculation after your spouse’s death.
Example:
Mrs. Brown’s husband passed away in 2016, but her pension remained the same. After review, she discovered she was owed £9,000 in back payments.
Action: Contact the DWP and request a pension review using your spouse’s NI details.
3. Over-80 Pensioners
People over 80 years old are entitled to a non-contributory pension rate, regardless of their NI contributions. However, many were underpaid.
Example:
Mr. Jones, 82, was receiving £64 per week instead of the required £85 per week. He is now owed thousands in compensation.
Action: If you’re over 80, check your pension payments against the minimum rate to see if you have been underpaid.
How to Check If You Are Owed Money
If you believe you qualify for the DWP back payment, follow these steps to check and claim your entitlement.
Step 1: Gather Your Documents
Before contacting the DWP, prepare the following:
National Insurance records
Marriage or civil partnership certificate (if applicable)
Death certificate (for widowed pensioners)
Pension statements showing past payments
Step 2: Contact the DWP Pension Service
Call the State Pension Helpline: 0800 731 0469
Visit the official DWP website: gov.uk
Step 3: Request a Pension Review
When speaking with the DWP, clearly state:
- Your personal details (including NI number).
- The reason you believe you were underpaid.
- Any supporting documents to verify your claim.
Step 4: Wait for a Response
The review process can take several months, but the DWP has committed to resolving cases by the end of 2024. Keep a record of all correspondence and follow up if necessary.
What Should You Do Now?
Check your pension statements for underpayments.
Contact the DWP if you think you’ve been affected.
Inform family members—many pensioners are unaware of this scheme.
Stay updated on new developments via the DWP website.
Why This Matters
This back payment scheme isn’t just about money—it’s about correcting years of unfair treatment that left thousands of pensioners financially shortchanged.
For many, this compensation could be life-changing, providing financial security and relief from rising living costs.
The £12,000 DWP back payment plan is a major opportunity for eligible pensioners to recover lost pension payments. If you or someone you know falls into one of the affected categories, act immediately to claim what is rightfully yours.
