Thousands of UK pensioners may be entitled to significant back payments due to historical underpayments in State Pension. The Department for Work and Pensions (DWP) has identified various groups affected by these discrepancies, with some individuals owed amounts averaging over £11,000. This comprehensive guide outlines who is affected, how to check eligibility, and the steps to claim any owed funds.
Summary of State Pension Underpayments
| Category | Average Arrears | Number of Cases | Total Repaid | Source |
|---|---|---|---|---|
| Widowed Pensioners | £11,725 | 50,261 | £483.4 million | |
| Married Women (Category BL) | £5,553 | 47,004 | £252.8 million | |
| Over-80 Pensioners (Category D) | £2,203 | 33,683 | £68.5 million | |
| Mothers with Missing HRP Credits | £8,377 | 12,379 | £104 million | |
| Total Identified Cases | — | 130,948 | £804.7 million |
Understanding the Underpayments
Background
The DWP’s correction exercise, initiated in January 2021, uncovered that certain pensioners were underpaid due to outdated systems and administrative errors. These errors primarily affected:
- Widowed Pensioners: Those whose payments weren’t adjusted following their spouse’s death.
- Married Women (Category BL): Women who didn’t receive the correct pension amount based on their husband’s National Insurance contributions.
- Over-80 Pensioners (Category D): Individuals over 80 who didn’t receive the appropriate pension uplift.
- Mothers with Missing HRP Credits: Women who claimed Child Benefit before 2000 but lacked corresponding National Insurance credits.
Causes of Underpayment
Several factors contributed to these underpayments:
- Manual Processing Errors: Reliance on outdated systems led to oversight in updating pension records.
- Incomplete Data: Missing or incorrect National Insurance information, especially for those who claimed Child Benefit before 2000.
- Lack of Automatic Updates: Failure to adjust pensions automatically after significant life events, such as the death of a spouse.
Steps to Check and Claim Owed Pension
1. Review Your National Insurance Record
Visit the HMRC National Insurance portal to examine your contribution history. Look for any discrepancies or gaps, particularly if you took time off work for childcare or other responsibilities.
2. Determine Eligibility
Assess whether you fall into any of the affected categories mentioned above. If unsure, it’s advisable to contact the DWP for clarification.
3. Contact the DWP
If you believe you’re affected:
- Phone (UK): 0800 731 0469
- International: +44 (0)191 218 7777
Provide necessary details, including your National Insurance number, to facilitate the review process.
4. For Deceased Relatives
If you’re the next of kin or executor for someone who may have been underpaid, refer to the official guidance for steps to request information and claim any owed amounts.
Frequently Asked Questions (FAQs)
Q1: How do I know if I’m affected by the underpayment?
A: Review your National Insurance record and assess if you fall into any of the identified categories. Contact the DWP for a detailed review.
Q2: Will the DWP contact me automatically?
A: While the DWP is reaching out to some individuals, it’s recommended to proactively contact them if you believe you’re affected.
Q3: Is there a deadline to claim the underpaid pension?
A: There’s no official deadline, but it’s advisable to act promptly to ensure timely processing.
Q4: Will claiming affect my current pension?
A: No, claiming owed amounts pertains to past underpayments and won’t impact your ongoing pension.
Q5: What if I live outside the UK?
A: You can still claim. Use the international contact number provided to reach the DWP.
Conclusion
The discovery of widespread State Pension underpayments underscores the importance of regularly reviewing personal records and staying informed. If you or someone you know falls into the affected categories, take the necessary steps to claim any owed amounts. For more detailed information, visit the official DWP page.
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