Thousands of pensioners could be owed a major boost to their state pension, all because of a huge Government error. According to the Department for Work and Pensions (DWP), more than £800 million in pension payments were underpaid over the years.
New figures released by the DWP show that as of March 31, 130,948 underpayments have been identified. This is part of a major review process that started back in 2021, and so far, a total of £805 million is owed to pensioners.
Rachel Vahey, head of public policy at AJ Bell, described the situation as “one of the biggest benefit scandals of modern times.”
She added, “Everyone who is affected by this scandal must get the money they are owed as quickly and smoothly as possible.” Sir Steve Webb, a partner at the consultancy firm LCP and a former pensions minister, also emphasized the urgency.
He said, “The remaining corrections need to be handled immediately. Mistakes like these must never be allowed to happen again. The DWP issued a statement too, saying:
“Our priority is ensuring pensioners receive the dignity and security they deserve in retirement. We are working to keep state pension underpayment rates as low as possible.”
So, Who Exactly Is Affected by This Error?
If you or someone you know falls into one of these groups, you might be eligible for a payment:
- Married women on a low state pension
If your pension was not automatically increased when your husband retired, you could be owed money.
(Average amount owed: £5,553) - Widows
If your pension wasn’t automatically reassessed after your husband passed away, you could be owed a bigger amount.
(Average amount owed: £11,725) - Over-80s
Some pensioners aged over 80 did not receive an automatic uplift in their state pension, which they were entitled to.
(Average amount owed: £2,203)
How Can You Find out If You’re Owed Money?
The DWP says that it has completed checking the “vast majority” of cases.
However, there are still a few outstanding cases where further documents are needed from the pensioner.
The good news is that some people don’t have to do anything. According to LCP, many married women, widows, and pensioners over the age of 80 will automatically receive the payments once their case is reviewed.
But some groups must take action:
- Married women whose husbands turned 65 before March 17, 2008
- Women who divorced after reaching pension age
If you belong to one of these categories, you must contact the DWP yourself and request a reassessment of your pension.
Here’s How You Can Check Your Eligibility
You can check how much you could claim by visiting the DWP’s official page for underpaid state pensions.
(They have provided specific information and contact details to help.)
If you think you fall into one of the groups that requires action, it’s a good idea to call the DWP or use their online forms.
You may need to provide documents like your marriage certificate, spouse’s death certificate (if applicable), or divorce documents.
You can contact the DWP through:
- State Pension Enquiry Line
- Online portals through the GOV.UK website
- Writing to the DWP directly if needed
What Should You Expect Once You Claim?
If you’re eligible, you will receive a lump sum payment to cover the underpaid amount.
On top of that, you might get interest added to your payment for the years you were underpaid.
The DWP has not provided exact timelines for when payments will be completed, but officials have said they are prioritizing older claimants first.
Rachel Vahey added a word of caution, too:
“Many pensioners are elderly, some very vulnerable. It’s essential the DWP speeds up the process and communicates clearly with those affected.”
Why Did This Error Happen in The First Place?
The underpayments happened because of complicated rules and manual errors when calculating state pensions for certain groups.
Especially for married women, widows, and those over 80, the system relied heavily on automatic increases that did not always happen.
Sir Steve Webb pointed out that the DWP systems were not built to handle these complex rules properly, and often human error made things worse. In 2021, after media pressure and campaigning by pension experts, the DWP finally started a full investigation.
Since then, thousands of pensioners have already received back payments, but many are still waiting.
What Should You Do Now?
Even if you have not received any notification, it’s worth checking your situation if:
- You are a married woman with a lower pension than expected
- You are a widow
- You are over 80, and your pension seems lower than it should be
- You were divorced after retirement age
Don’t assume that the DWP will automatically contact you, especially if you belong to the groups that require action.
It only takes a quick call or form submission to start the process.
Given the average amounts involved (up to £11,725!), It’s worth checking.
Conclusion
A small step today could mean a big financial boost for your retirement tomorrow. If you or a loved one could be affected, don’t delay — check your eligibility, claim what you are owed, and secure the retirement income you deserve.