Some people in receipt of the State Pension could be due up to £6,929. A correction exercise is under way by the Department for Work and Pensions (DWP) which could mean a refund for hundreds of thousands of pensioners.
At the beginning of the year, the DWP said it expects to rectify State Pension underpayments for two groups of women by the end of 2023. The groups affected are CAT BL and CAT D.
The Pensions Minister Laura Trott said the exercise should be completed by the end of this year, but it could run through to late 2024. The Daily Record reports this may be due to a further 100,000 State Pension cases which have been identified as having a possible underpayment.
Read more: DWP State Pensioners living on their own could be due extra cash from April
The DWP will be looking at 700,000 State Pension awards for errors. The two groups of women include married women who should have received an upgraded State Pension and those aged over 80.
The latest figures from the DWP show that £209.3m in State Pension underpayments have been repaid to 31,817 pensioners since the correction exercise began in January 2021 and the end of October 2022. The latest report also shows that arrears payments made to affected married women average £6,929 and for those over 80, £3,172.
While the check and correction exercise affects mostly women, some men may have been underpaid too. However, it’s important for anyone who receives an arrears payment to realise it may affect other entitlement.
In the latest Local Authority Welfare bulletin, which offers updates and guidance to advisors, it states that when a State Pension underpayment is identified, DWP will contact the individual to inform them of the changes to their State Pension amount and of any arrears payment they will receive. It adds that any arrears due will be backdated to the date they became entitled to an increased State Pension amount.
Martin Lewis's Money Saving Expert website says: "Married women who hit state pension age before April 2016, including widows and divorcees – and the over-80s, whether married or not – should check if they're owed. While some affected women will now get an automatic payment, not all will."
The Government MoneyHelper service says: "In the past, it was possible to claim larger State Pension payments based on a spouse or civil partner’s National Insurance record, and the date you and your partner reached State Pension age. This would typically be a figure equal to 60% of your spouse or civil partner’s 'basic State Pension'.
The people most likely to benefit from this are women born before April 1953. The GOV.UK site outlines the circumstances that could mean you're eligible
Before March 2008, you'd have needed to make a claim for any extra amount. After March 2008, this should be happening automatically.
READ NEXT:
DWP outline dates new payment rates will start from next month for State Pension and other benefits
DWP Universal Credit payment dates expected to change over five bank holidays in April and May 2023
145,000 young people owed share of huge £394m fund just waiting to be claimed
Energy bills set to be slashed for millions of UK households with prepayment meters
Supermarket price hike sees 'all-time high' for budget range basket - price breakdown here
