Millions of pensioners across the UK may be receiving less State Pension than they are entitled to, as the Department for Work and Pensions (DWP) conducts a large-scale review of potential underpayments.
According to Manchester Evening News, historical errors have been identified, with some individuals owed substantial back payments. While most pensions are paid correctly, certain groups appear to be more affected than others.
Experts are now urging pensioners to check their annual uprating letters for possible discrepancies. Understanding who might be impacted and what steps to take could be essential.
Thousands of Pensioners Urged to Check for Underpayments
Millions of pensioners in the UK could be entitled to back payments as the Department for Work and Pensions (DWP) reviews State Pension errors. New figures reveal that some individuals have been underpaid, with potential refunds averaging £11,905.
The DWP is currently reassessing tens of thousands of cases, particularly affecting those who reached State Pension age before April 2016. Pensioners are now being advised to carefully check their annual uprating letters, as some may be receiving less than they are entitled to.
Speaking to the Daily Record, former DWP employee Sandra Wrench, who spent 42 years working for the department—18 of them on State Pension matters—urged pensioners to take action.
There has been a lot of coverage in the media about the underpayment of the State Pension, but not a lot of information about how pensioners can check for themselves whether they are in receipt of the correct amount or not – she said.
Having worked in DWP for 42 years, 18 years of which were spent on State Pension, my advice to pensioners is to be proactive, and the following information may be of use in ascertaining whether you have been underpaid or not.
State Pension Review : Who Is Affected?
The latest government data confirms that 13 million people receive the State Pension, including 4.1 million on the New State Pension and 8.8 million on the Basic State Pension. While most payments are correct, historical errors have been identified, prompting DWP and HM Revenue and Customs (HMRC) to conduct a thorough review.
The issue primarily affects widows and divorcees, married women who may not have received the correct payments, and people over 80 who should be receiving at least 60% of the Basic State Pension.
Additionally, women who had children before 1978 may have missing Home Responsibilities Protection (HRP) credits, which could impact their pension entitlement. Many of these individuals could be owed substantial amounts, and pensioners are encouraged to verify their payments.
How to Check Your State Pension Payments
Pensioners receiving the Basic State Pension should look for discrepancies in their uprating letters, which detail their pension amounts. As of April 2024, the full Basic State Pension stands at £169.50 per week, set to increase to £176.45 per week from April 2025.
Married women and those over 80 should receive at least £101.55 per week, which will rise to £105.70 in April 2025. Additionally, individuals over 80 receive an age addition of 25p, a rate that has remained unchanged for years.
Any additional pension or graduated pension should be added on top of these amounts. If discrepancies are found, pensioners should contact the DWP change of circumstances helpline at 0800 731 0469 and request a review of their payments.
Why Some Women May Receive a Lower Pension
A key factor affecting underpayments is the Home Responsibilities Protection (HRP) scheme, designed to protect pension entitlement for parents who took time off work to raise children. HRP was introduced in 1978 and was later replaced by National Insurance (NI) Credits in 2010.
Sandra Wrench explained :
One possible reason is that women who had their children prior to April 1978 had no protection for their State Pension if they stayed at home to look after their children, as Home Responsibilities Protection (HRP) was not introduced until April 1978, and you got this protection until your child was 16. In April 2010 HRP was replaced by National Insurance (NI) Credits for parents and carers, and you got these credits until the child was 12.
She added that errors in NI records between 1978 and 2000 mean that some women may not have received HRP credits, resulting in lower pension payments.
The government (DWP) issued a statement in July 2023 that a lot of women who had children between 1978 and 2000 may not have had HRP added to their NI accounts, so consequently may have been underpaid their State Pension. Prior to 2000 you did not have to put your National Insurance number on the child benefit form when you claimed child benefit.
Pensioners can review their NI records to check for missing qualifying years. If gaps are found, they can apply for HRP credits by calling the NI helpline at 0300 200 3500.
Divorced Women May Be Entitled to Higher Payments
Women who divorced after claiming their State Pension may be entitled to an increase in their payments.
“If you get divorced after you have claimed your State Pension, you need to notify DWP on 0800 731 0469 as this is a change of circumstances, and if you have less than 100 per cent Basic State Pension, it could be increased to 100 per cent using your ex-husband’s NI contributions,” Sandra explained.
She also clarified that any additional pension and graduated pension amounts will still be included.
“DWP will not know that you are divorced unless you tell them. You will need to send in your decree absolute to DWP for confirmation of your date of divorce.”
Crucially, State Pension entitlements remain unchanged even if a claimant remarries after their divorce.
Bereavement Benefits and Recent Changes
The Bereavement Support Payment replaced Widows’ Benefits in 2017. However, it is only available to those under State Pension age.
You must claim within three months of your spouse/civil partner’s death to get the full rate of the benefit. You can claim up to 21 months after their death but you will get fewer payments – Sandra advised.
Since February 9, 2023, cohabiting parents with dependent children are also eligible for bereavement benefits following a legal change.
For those on the Basic State Pension, bereavement support inquiries can be made by calling 0800 151 2012.
