The Department for Work and Pensions (DWP) has revealed that UK pensioners have been underpaid a total of £804.7 million in state pension benefits. Some individuals are owed up to £12,000. Since January 2021, the DWP has been reviewing cases and found nearly 131,000 underpayment instances. This problem mainly affects married women, widowed pensioners, and people aged over 80.
The Scale of the Underpayment Issue
Between January 11, 2021, and March 31, 2025, the DWP identified 130,948 underpayment cases, with arrears exceeding £800 million. While some pensioners were overpaid in other benefits, in some cases the pensioner has passed away, and the money could not be paid to their estate.
Who Is Affected?
The DWP confirmed the underpayments mostly affect:
- Married women on low state pensions whose payments weren’t automatically raised when their partner retired.
- People whose pension wasn’t reassessed after their spouse died.
- Individuals aged over 80 whose pension wasn’t automatically increased.
- Some claims may involve multiple errors and fit into more than one category.
How Much Could You Be Owed?
Average underpayments reported by the DWP include:
- Widowed pensioners: £11,725
- Married women (category BL): £5,553
- Over-80s (category D): £2,203
An ongoing correction exercise on Home Responsibilities Protection (HRP) is addressing more missing pension payments. As of September 2024, this has uncovered 5,344 underpayment cases, totalling £42 million.
Comments from Sir Steve Webb
Former pensions minister Sir Steve Webb has helped uncover these pension errors. He said the HRP correction process will likely increase payments as it continues. He also pointed out that women have been the hardest hit, some underpaid for decades or having died without receiving their correct pensions. He urged urgent action to fix these errors, stating, “This should never have happened in the first place.”
Industry Reaction
Rachel Vahey from AJ Bell called the issue one of the “biggest benefit scandals” in recent times. She emphasised the need for quick and efficient payment to those affected, especially women who were shortchanged by these errors.
DWP’s Response
A DWP spokesperson said the department is committed to giving pensioners the dignity and security they deserve in retirement. Most underpayment cases have been resolved, with only a few pending due to missing documents.
The state pension underpayment problem shows serious faults in the system, especially impacting widowed pensioners, married women, and those over 80. As the DWP works to pay owed arrears, it is crucial that all affected pensioners receive the money they are rightfully owed. If you think you might be affected, checking your pension payments and contacting the DWP can help ensure you don’t miss out.
FAQs
What is the state pension underpayment issue?
It refers to the problem where nearly 131,000 UK pensioners have been underpaid a total of £804.7 million in state pension benefits.
Who is most affected by these pension underpayments?
Married women, widowed pensioners, and individuals aged over 80 are the groups most affected by pension underpayments.
How much money could pensioners be owed?
Some pensioners could be owed as much as £12,000 in underpaid pension benefits.
What is Home Responsibilities Protection (HRP)?
HRP is a scheme that protects pension rights for people who took time out of work for home responsibilities; errors in HRP have led to underpayments.
What is the DWP doing to fix the underpayment problem?
The DWP is conducting correction exercises and aims to pay owed arrears, with most cases completed and some pending due to documentation.
What should pensioners do if they think they have been underpaid?
Pensioners should check their pension statements and contact the DWP to confirm if they are owed any arrears.
That’s great for pensioners they need all help they can get but what about people like me I’ve got two rare paralysing conditions I had trouble when it was DLA. I finally got told I should have been on high rate and put me on it independently and back paid me £1600 back pay then changed it to pip I had trouble again so got noddle rate then went for appeal didn’t work out then I’m told I should have been on high rate since beginning but again I only got £1600 I believe it should be more than that should go back couple of year I missed out when I should have been on it so why can pensioners get what there owed but people like me can’t and those that don’t need it get full back pay when those that need it don’t get anything it’s wrong I believe we should get what we’re owed 8f showes I should have been on it from start and not 3nonths
They seem to be muck raking blaming the previous government for mistakes
Roll on 2026 when we can get rid of the smug Bar steward bankers
I was widowed nearly 3 years ago the DWP said I wasn’t eligible, as when I first spoke to the DWP they said I was they haven’t a clue
Hello Michael Oconnor,
When did you contacted to DWP?
I am widowed now gor nearlyv3cyears how do I check if I will be due arrears money?
I spoke to the DWP years ago when my husband died and they said they would look into it and get back in touch with me…..they never did of course. I have subsequently moved house, but have informed the DWP of my change of address…….still never heard anything. 3 yrs have gone by….? Useless.
I work for 27 years three years bringing baby up 30 years. They can only find 19 years of my national insurance and tax paid I started work in 1968 until 1998