Bereaved families in the UK are now facing the challenge of recovering state pension repayments they may be entitled to due to past underpayments. These underpayments have been the result of errors and oversights by the Department for Work and Pensions (DWP).
However, a recent shift in policy has seen the DWP cease its investigations into these issues. As a result, families are now required to gather and submit their own documents to claim the money they are owed.
According to Manchester Evening News, this update has created additional hurdles for families already struggling to navigate the complex system of state pension repayments.
Background on State Pension Underpayments
The issue of state pension underpayments arose due to errors and oversights made by the DWP over a number of years. As a result, many families could be entitled to significant repayments, with some cases amounting to thousands of pounds. In some instances, these underpayments have reached over £100,000.
However, recent updates indicate that the DWP will no longer be carrying out its own investigations into these cases.
Instead, the onus is now on affected families to provide the necessary documentation to substantiate their claims. This includes providing old letters, bank statements, and other relevant records that can demonstrate the underpayment.
Impact of the DWP’s Decision to End Investigations
In a significant shift, the DWP has stopped its investigations into state pension underpayments. Families began receiving letters this month notifying them that the department had ended its inquiry, meaning that without specific documentation, they will not receive the owed repayments.
This decision has caused outrage among families. Steve Darling, the Liberal Democrat Work and Pensions spokesperson, expressed his concerns :
It’s deeply troubling that families are being told the DWP can’t check because records have supposedly been deleted. Bereaved families deserve transparency and a fair chance to ensure their relatives received what they were entitled to.
The controversy surrounding this decision stems from earlier revelations that the DWP had been destroying state pension records four years after the death of a pensioner and their surviving spouse. This practice, which was paused in January 2021, has left many families without the necessary records to prove their claims.
It is now paused until 31 December 2026, following the discovery of major errors in some pension records, particularly affecting elderly married women and widows. Approximately 2,500 families have been affected by the deletion of data prior to 2021.
The Frustration of Families Waiting for a Resolution
The DWP’s decision has left many families frustrated after years of waiting. As Steve Webb, a pension consultant, highlighted:
It is immensely frustrating for people who registered details of a loved one to be kept waiting years for a response, only to be told that records have been deleted.
Webb continued, describing the situation as “pretty shocking” for those who had been waiting for years only to receive letters stating that nothing could be done because the records were destroyed.
This has turned many families into “private detectives” as they now have to search for old documents to challenge the DWP and claim the money they are owed.
What Families Can Do to Claim State Pension Repayments
Families affected by underpayments will now need to take a more active role in retrieving old records. For those seeking repayments, the DWP has stated that they should submit any relevant historical records, including letters from the department or bank statements showing pension payments.
Steve Webb advised :
If you are tracking down old bank statements for a late relative, it would be most useful to narrow it down to the months just before and after their spouse reached state pension age, or just before and after their spouse died.
This period is often when underpayments are most likely to occur, and comparing these records with official state pension rates could help identify discrepancies.
What the DWP Says
A DWP spokesperson confirmed that the department will still review cases based on evidence submitted by families.
We always encourage next of kin and representatives of deceased customers to contact us if they have relevant proof such as historical letters from the department so we may be able to review the customer’s state pension award.
As of September 2024, the DWP has reviewed 857,050 cases, with many still awaiting resolution.
