A Department for Work and Pensions (DWP) error has resulted in thousands of state pensioners losing out on money.
The DWP has admitted that many women have not been paid the correct amount of State Pension that they were entitled to, reports the Mirror. The National Audit Office (NAO) has blamed the error on "outdated IT systems" and complex rules that required pension increase claims to be made manually rather than automatically.
The error has largely affected women who reached State Pension age before April 2016. According to the latest DWP figures, a total of 31,817 underpayments were identified between January 2021 and October 2022.
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These underpayments are worth a total of £209.3 million respectively. It has been estimated that as many as 237,000 people have been affected by the mistake overall - and around £1.46 billion has been underpaid.
There are three groups that the DWP has highlighted as being affected by these underpayments. All three groups consist of those who retired before 2016.
This is because after this date, a woman's pension was no longer linked to their husband's.
These are the three groups:
- Married women who should have received an upgrade to a 60 per cent basic state pension when their husband retired - average payment arrears total to £6,929
- Widows who should have inherited an enhanced state pension when their spouse died - average payment arrears total to £10,772
- Those over the age of 80 who were already in receipt of a state pension when they turned 80, who should have been automatically upgraded to a 60% basic state pension - average payment arrears total to £3,172
In January 2021 the DWP said it had begun an exercise to find the pensioners affected. However, it has taken more time to begin than planned as the department needed to recruit and train staff for the job.
The DWP originally wanted to complete the process by the end of 2023, but now believe that the project could run on "through to late 2024". This was confirmed in November in a written response from Pensions Minister Laura Trott MP.
Those who have been affected will be contacted by the DWP as soon as their case has been evaluated. The pensions department will likely send you a letter confirming how much back pay you are entitled to.
If you believe you are owed pension back payments, then you should call the Pension Service. This is typically the quickest way to find out if you are eligible for the State Pension refund.
The best number to call is 0800 731 0469 but full contact details can be found on the Government website.
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