DWP Announces Back Payments for State Pensioners: Thousands Owed Up to £11,900

The DWP will pay thousands of state pensioners after finding widespread underpayment. About 120,000 women, mainly those of pension age before 2016 will get a combined total of £736 million in back payments. For years, many women have not received the automatic increase to their pension they were legally entitled to. This may have led to back payments in some cases worth £11,900.

Who Qualifies for the DWP Back Payments?

The DWP's review has identified three main groups affected by these underpayments:

• Married women: average back payment of £5,591
• Widows: average back payment of £11,905
• Individuals over 80: average back payment of £2,202

In 2021, the DWP initiated LEAP, which is a thorough investigation process. According to LEAP, many married women have been missing on various updated pension entitlements. This is basically due to the errors in the process of allocating National Insurance credit and processing claims for Child Benefit. By September 2024, 119,050 cases have been resolved so far.

Historical Reasons for the Underpayments

A large part of the problem stems from Child Benefit claim forms filled in before 2000 which very often do not include a National Insurance number. Missing credits were not recorded as a result of this omission, which could have increased benefit levels over time. The DWP discovered the error in 2020 and as a result, the review was set up. Now, affected pensioners will be able to receive the money they missed out on.

DWP's Continued Commitment to Repayments

Key points on the DWP's progress:

• Two of the three primary groups have completed assessments
• Widowed women are expected to receive payments by the end of 2024
• Between January and September 2024, 5,344 additional cases were identified, with an additional £42 million allocated for arrears

All pensioners who fit in the criteria are requested to check their accounts and contact the DWP if necessary, so their pension record is updated. Through this undertaking, other claimants in the same position will be able to remedy the DWP’s historical mistakes.