More than £800 million in State Pension underpayments has been uncovered by the Department for Work and Pensions (DWP) in an ongoing correction exercise.
The DWP revealed that, between January 11, 2021 and March 31, 2025, a total of £804.7 million has been identified as underpayments owed to 130,948 individuals.
The errors span a range of issues, including the failure to automatically increase pensions for married women, those widowed, and people over the age of 80. In some cases, pensioners may also have received overpayments in other benefits, such as Pension Credit.
The DWP has assured the public that it is actively working to correct these errors, but has also urged pensioners to remain vigilant and check their records.
Affected Pensioners and Key Error Categories
The DWP has outlined several groups who are most likely to have been impacted by the pension underpayments. Married women who were entitled to an increase in their State Pension following their spouse’s retirement may have missed out on adjustments.
Similarly, individuals who were not automatically reassessed after the death of their spouse or civil partner could have been underpaid. Those over 80 are another group who may have missed out on automatic increases to their pension entitlement.
According to the DWP, these underpayment errors are being identified through a correction exercise that has now reviewed over 130,000 cases. The department has confirmed that each case may involve multiple errors, with some pensioners having received underpayments for more than one reason.
Actionable Steps for Pensioners
For pensioners who believe they may have been affected by underpayments, the DWP recommends reviewing their annual pension uprating letters, which are typically sent out in April.
These letters provide an overview of any changes to State Pension amounts, and pensioners can quickly spot discrepancies by comparing the amounts shown with their expected pension.
Sandra Wrench, a former DWP employee with 42 years of service, advised pensioners to be proactive in reviewing their letters. She pointed out that pensioners who began claiming before April 2016 are more likely to experience discrepancies.
If any underpayment is suspected, individuals should contact the DWP directly to request a review of their case. The DWP helpline for this is 0800 731 0469.
The correction exercise has also highlighted issues with historical Home Responsibilities Protection (HRP) records, which could result in inaccurate pensions.
Women who raised children before 1978 may have been especially affected, as HRP was not introduced until then. The DWP is also working to identify these issues and rectify them for those impacted.
