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'State pension delays mean I won't get any money for at least three months'
I have been reading your article from last year stating that the Pensions Minister was confident the backlog in payments to new pensioners would be resolved. But I have recently discovered that those reaching state pension age this year are still affected.
I live in France with my partner. I applied in the correct way back in October as I reached pension entitlement age (66) on January 23, 2022, after 59 years of work and N.I. contributions.
I phoned the DWP's international department three weeks ago to ask why I have not yet had a confirmation letter for my application, and was informed that with current delays, I probably won't receive my first payment until March 2022 at the earliest.
We find this situation totally unacceptable and it's causing a lot of hardship and difficulty to those who deserve what is rightfully theirs after a lifetime of work
Mirror Money's response
The Department for Work and Pensions (DWP) has been experiencing delays on first state pensions for almost a year now – a backlog it attributes to the pandemic.
Pensions minister Guy Opperman has cited pandemic restrictions and staff shortages among reasons for the delays, claiming that a significant number of people changed their minds about deferring their state pension when the UK went into lockdown.
However, many of the retirees affected were told the six month delay would end in October.
In your case, you took the correct steps by submitting your application three months before retirement and you should have received confirmation of your application – if not your first payment date – by now.
Under ‘normal’ timescales, when you retire, your first pension payment doesn’t actually arrive on the day you give up work.
It’s actually made four weeks in arrears. So roughly speaking, if you retired on January 23, you wouldn’t get a payment until around February 21.
On top of that overseas claims can be complicated for other reasons – for example, they need to check if you live in a country where pensions are ‘frozen’ rather than uprated, and they sometimes have to deal with contributions made in another country which can conflict with the UK system.
As a result, many requests for state pension payments overseas are dealt with completely differently.
However, you haven’t even had confirmation of your application yet let alone a date on when it will arrive.
When The Mirror put your concerns to the DWP, it told us there are no delays on standard applications for the state pension - and it agreed to review your case.
It said International state pension claims can take longer than UK claims, as they can require additional clerical checks and information from overseas pensions authorities in order to process.
It agreed to investigate your case - and your claim has now been finalised and first payment issued.
A DWP spokesperson said: “Anyone making a claim today should not experience delays.”
If you do experience a late payment, your first pension should be backdated.
The DWP has however, ruled out blanket compensation for those who were left without an income because of these administrative delays.
But pensions minister Guy Opperman has said the government would consider special payments where pensioners have been left financially worse off on a case-by-case basis.
So hold on to any paperwork if you have been left out of pocket - my advice to you would be to make a claim once your first payment finally arrives.
Steve Webb, former pensions minister and now partner at consultancy firm LCP has called for greater clarity for overseas retirees.
He said: “Despite assurances by Ministers, we are still hearing far too many cases of people waiting too long to get their state pension started.
“Anyone outside the UK or anyone with anything slightly different about their application can get stuck in a queue and real hardship has been caused in some cases.
“The DWP needs to put more resources into processing claims from outside the UK and should make sure that everyone who claims their pension receives a prompt and efficient service”.
Disclaimer
Money Troubles aims to be informative and engaging. Though it may include tips and information, it does not constitute advice and should not be used as a basis for any financial decisions.
All information in this post was correct at date of publication.
