2 weeks Ago
More than £800 million of state pension underpayments has been identified in a correction exercise, according to Government figures - and they aren't finished yet. The Department for Work and Pensions (DWP) published an update on Thursday of cases checked as part of the exercise which started in January 2021. Between January 11 2021 and March 31 2025, the checking process identified 130,948 underpayments, with a total of £804.
7 million owed. In some cases, people may have received an overpayment of another benefit such as pension credit, the department said. It also said there may be some cases where the person has died and the DWP has been unable to identify an estate to which to pay arrears.
Those affected by errors include married women on low state pensions whose pension was not automatically uplifted when their partner retired people whose pension was not automatically reassessed on the death of their spouse over-80s whose state pension entitlements were not automatically increased Cases may be checked for more than one potential cause of error so a claim may be counted in more than one category, the DWP publication said. Another state pension correction exercise is looking into missing historic periods of Home Responsibilities Protection (HRP), leading to inaccurate state pension payments. Between January 8 and September 30 2024, the exercise identified 5,344 underpayments, with total arrears of around £42 million.
Sir Steve Webb, a former Liberal Democrat pensions minister who has been unearthing state pension errors, said the amounts paid out under the current HRP exercise are expected to rise sharply as it gathers momentum. A previous HRP correction exercise over a decade ago led to state pension arrears payments of £83 million. Recommended reading: Winter Fuel Payments should return for all pensioners, say MPs DWP State Pension age will have to rise to 71 says report DWP Cost of Living Payment report shows more support needed Sir Steve said: “The vast majority of those who lost were women, some of whom were underpaid for decades or even went to their grave never paid the right state pension.
“The remaining corrections need to be handled as a matter of urgency. This should never be allowed to happen again.” Rachel Vahey, head of public policy at AJ Bell, said: “This is one of the biggest benefit scandals of modern times.
DWP miscalculations have left thousands of pensioners – mainly women – short on their state pension payments. “It is absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible.” New State Pension rates from April 7 2025 Full New State Pension Weekly payment: £230.
25 (from £221.20) Four-weekly payment: £921 (from £884.80) Annual amount: £11,973 (from £11,502) Full Basic State Pension Weekly payment: £176.
45 (from £169.50) Four-weekly payment: £705.80 (from £678) Annual amount: £9,175 (from £8,814) Pension Credit rates from April 7 2025 On Pension Credit, Sir Stephen said the standard minimum guarantee would increase by 4.
1% from £218.15 to £227.10 per week for single pensioners and from £332.
95 to £346.60 per week for couples. Those in receipt of Pension Credit will automatically receive the increase in their pensions - just under £9 a week.
There are additional elements available if you're a carer, you're disabled, you're looking after children, or if you have savings and have reached state pension age before April 2016. Pension Credit tops up your income if you're above state pension age. It is also known as a gateway benefit, as it unlocks other perks such as council tax discounts and free TV licences for over-75s.
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