The Department for Work and Pensions (DWP) has published a full progress report on the Legal Entitlements and Administrative Practice (LEAP) initiative into State Pension underpayments.
This aims to rectify historical errors that have led to tens of thousands of women receiving less State Pension than they are entitled to on the basis of their husband’s National Insurance record.
Nearly 100,000 Pensioners Repaid Up to £12,486 Due to State Pension Errors
The main groups affected by these errors are married women (category BL), people in civil partnerships, widows and people aged over 80 (category D).
Recent data reveals that between 11 January 2021 and 29 February 2024, 705,688 state pension accounts were reviewed, uncovering a total of £571.6 million in underpayments.
So far, approximately 97,016 pensioners, most of them being women, have been paid back payments averaging £2,192, £5,713 and £12,486, depending on their pension category.
This LEAP update is vital for four key groups of older people: married women (category BL), people in civil partnerships, widows and people aged over 80 (category D). Work on these cases was due to be completed by the end of 2023 and is apparently well underway.
Helen Morrissey, Head of Pensions Analysis at Hargreaves Lansdown, commented: “While progress is being made to address the large-scale problem of state pension underpayments, it remains slow.
“Over £571 million has been returned, but with estimates of underpayments reaching around £1.5 billion, there is still a long way to go.”
Mr Morrissey pointed out that many people expect their state pension to be accurate, but the complexity of the system leads to many errors.
“Some people who have claimed their pension from the DWP have been wrongly assured that there is no problem, which has led to severe financial hardship for many. These people have been let down and need a swift solution.”
The problem came to light in 2020 when the DWP discovered that some people had not received automatic increases to their pensions, as required by law.
As a result of this finding, an investigation was carried out to assess the scale of the problem. However, it is important to note that the majority of the 12.7 million state pension recipients receive the correct amount.
Progress from January 11, 2021, to February 29, 2024:
Married (Category BL)
- Cases reviewed: 317,955
- Underpayments identified: 43,367
- Average arrears: £5,713
- Total amount repaid: £243.8 million
Widowed (Category B)
- Cases reviewed: 298,099
- Underpayments identified: 21,175
- Average arrears: £12,486
- Total amount repaid: £262 million
Over 80 (Category D)
- Cases reviewed: 89,634
- Underpayments identified: 32,474
- Average arrears: £2,192
- Total amount repaid: £65.5 million
Progress in the LEAP exercise is based on DWP management information, which includes individually reviewed files to identify underpayments and the reasons for them, as well as data from the department’s IT system which manages active and deceased state pension files.
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