Thousands of pensioners across the UK have been short-changed due to mistakes in their state pension payments. The error has cost the Government more than £800 million so far, and the number is still growing.
The Department for Work and Pensions (DWP) revealed that over 130,000 underpayments were discovered between January 2021 and March 2025. Most of those affected are elderly women.
In the last six months alone, around 11,000 more cases were found, pushing the total amount of unpaid pensions from £735 million in November 2024 to £804.7 million as of March 31, 2025.
Some people were even found to have received too much under other benefits, like Pension Credit, but the bigger concern remains those who missed out on what they were rightfully owed.
Sir Steve Webb, former pensions minister and now a partner at LCP, said that the total unpaid amount is likely to cross £1 billion this year.
But what caused this mistake? How can you find out if you are affected? Here’s everything you need to know.
Why Were State Pensions Underpaid?
The DWP started a massive correction project in January 2021 after it was found that many pensioners had not received the correct increases to their pensions because of administrative errors.
These mistakes meant that people who were entitled to higher payments, especially under the old pre-2016 pension system, did not get the money they deserved. Some of these errors date back as far as 1985.
According to DWP, the main groups affected are:
- Married women whose pensions were not automatically increased when their husbands retired.
- Widows whose pensions were not reassessed after their husbands’ deaths. A few widowers were also affected.
- People over 80 with low pension amounts who did not get their automatic uplift at 80 years of age.
The correction exercise found around 130,000 underpaid people. This includes over 50,000 widows and widowers, 47,000 married women, and 34,000 people aged over 80.
The average arrears (unpaid money) given to these pensioners was around £6,000 each.
The Second Correction: Home Responsibilities Protection
Another major correction began in January 2024. This one focused on mothers who had children before 2000 and were supposed to get “Home Responsibilities Protection” (HRP) to boost their National Insurance (NI) records.
HRP helped protect their pension rights if they stayed home to look after their children. But many women’s records missed these protections, leading to lower pensions.
By September 2024:
- HMRC sent over 370,000 letters to people who might have been affected.
- Over 42,000 applications were processed.
- About 19,000 cases were referred to DWP for pension reassessment.
- So far, 11,700 cases have been checked, and over 5,000 people were found to be owed money.
The total arrears paid out in this correction is about £42 million, with the average amount being £7,859 per person.
Experts Speak: ‘This Should Never Happen Again’
Sir Steve Webb said the total amount underpaid is likely to cross £1 billion this year, affecting over 170,000 people.
He added, “We have become so used to hearing about pension mistakes that many people are forgetting how serious it is. Many women lost out on thousands of pounds for decades. Some even died without ever getting their rightful pension.”
He stressed that the remaining corrections must be handled urgently.
Rachel Vahey, Head of Public Policy at AJ Bell, said it could take until March 2027 to fully fix all the cases.
She said, “Everyone who missed out must get their money as soon as possible. The DWP is asking people to come forward with more information, but that depends on people being able to access the internet or engage with DWP services.”
A spokesperson for DWP added, “We are working hard to correct historical underpayments made by past Governments. We are fully committed to addressing these issues and have set up a dedicated team to handle the corrections.”
How to Check If You Have Been Underpaid?
The DWP is contacting some married women directly. But if you are a widow or over 80 years old, it is important to check on your own if you could be eligible for back payments.
Here’s how you can check:
- Use the LCP State Pension Calculator
Pension consultants LCP have created a free online calculator that can help you check if you are owed money. - Contact the Pension Service Directly
You can reach out to The Pension Service and ask them to review your state pension record. You will need to provide:- Your National Insurance number
- Details of your current state pension
- Your spouse’s details (if applicable)
- Phone: 0800 731 0469 (Press Option 2)
- Write To: The Pension Service, Post Handling Site A, Wolverhampton, WV98 1AF
- Online: Visit the Pension Service website for more contact options
- Next Steps if You’re Not Satisfied
If you contact the Pension Service and feel that your case was not properly reviewed, you have the right to escalate the issue to the Parliamentary Ombudsman.
What Should You Do Now?
If you think you or a loved one might have been underpaid, act quickly. Some cases have seen refunds worth several thousand pounds, and you deserve every penny you are owed.
It’s also important to stay alert for any letters from HMRC or DWP regarding your state pension.
And even if you don’t receive any communication, it’s worth proactively checking, especially if you fall into one of the affected groups.
With corrections expected to continue for another two years, thousands more pensioners may still be unaware that they were underpaid.
The sooner you check, the sooner you can get your rightful pension money.