Thousands of women affected by longstanding errors in the UK state pension system are now receiving lump-sum repayments. The Department for Work and Pensions (DWP) has begun distributing correction payments, with some individuals receiving more than £11,000.
The repayments follow a detailed internal review that revealed significant underpayments across specific pensioner groups, particularly among women. These errors date back several years and reflect systemic oversights in how entitlements were processed.
The underpayments came to light after former pensions minister Steve Webb raised concerns over discrepancies in the state pension records. The DWP has since identified over 130,000 affected pensioners and is undertaking a large-scale correction exercise.
Three Categories of Pensioners Identified as Underpaid
According to figures released by the DWP, the correction exercise has thus far identified 130,948 individuals who were not paid their full entitlement. The majority of those affected fall into three distinct categories.
The first group includes married women whose state pensions were not automatically increased when their husbands retired, listed under Category BL. These women received an average back payment of £5,553.
The second group comprises widows whose pensions were not properly reassessed after the death of a spouse. This category has seen the highest average correction amount, with individuals receiving £11,725 on average.
A third group includes women over the age of 80 (Category D) who were eligible for an automatic entitlement increase but never received it. These individuals have received £2,203 on average.
The DWP said that the vast majority of cases have now been resolved, with a small number still under review due to missing documentation. In a public statement, the department noted: “Our priority is ensuring pensioners receive the dignity and security they deserve in retirement and that State Pension underpayment rates remain as low as possible.”
Over £1 Billion Expected in Total Arrears
Steve Webb, now a partner at pension consultancy LCP, has been closely involved in the ongoing investigation. Speaking on the scale of the issue, he stated: “We have become so used to stories about state pension errors that it is easy to become dulled to the scale of what went wrong.”
Webb further remarked that the total sum of underpayments could exceed £1 billion by the end of this year, affecting an estimated 170,000 individuals.
The overwhelming majority of those impacted are women, many of whom were underpaid for decades. Some died before receiving the correct payments. Webb has called for the remaining cases to be prioritised and processed swiftly, describing the situation as a matter “that must never be allowed to happen again”.
According to the DWP, corrective payments are being made automatically, with no need for recipients to apply. Letters are being issued to notify eligible individuals of the backdated sums being credited to their accounts.
