Recent figures from the Department for Work and Pensions have revealed that £209.3million in State Pension underpayments have been repaid to 31,817 pensioners since the correction exercise began. Those underpaid include some pensioners who were married and should have received an upgraded State Pension, people who were widowed and people over 80, the Daily Record reports.
But the DWP figures also show that arrears payments made to married women average £6,929, for widowed pensioners it averages £10,772 and for those over 80, £3,172. After the figures were published, a pensions expert labelled the total repaid is a "drop in the ocean" when compared to the amount estimated to have been underpaid overall.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “The data shows the DWP has so far handed back more than £209 million to people affected by State Pension underpayments. This is progress but a drop in the ocean when compared to the almost £1.5 billion estimated to have been underpaid overall.
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"In some cases, these underpayments have stretched back decades. And even though DWP has pledged to hire more people to speed up the process, it is clear many could be waiting for some time still before they are reunited with their money."
Women retiring under the old Basic State Pension system are primarily affected by the underpayments, Ms Morrissey added. She explained: “They will have had an expectation their State Pension would be paid correctly and due to an overly complex system this has not happened on a huge scale with many women enduring financial distress as a result.”
State Pension underpayment progress
Payments made between January 2021 and October 2022 are listed below:
Married (Cat BL)
- Cases reviewed: 62,965
- Underpayments identified: 13,157
- Average arrears: £6,929
- Total amount repaid: £91.1m
Widowed
- Cases reviewed: 25,268
- Underpayments identified: 7,876
- Average arrears: £10,772
- Total amount repaid: £84m
Over 80
- Cases reviewed: 23,720
- Underpayments identified: 10,784
- Average arrears: £3,172
- Total amount repaid: £34.2m
Who may be due back payments for State Pension?
There are six particular groups strongly encouraged to contact the pension service to see if they could be entitled to more State Pension:
- Married women whose husband turned 65 before March 17, 2008 and who have never claimed an uplift to the 60 per cent rate
- Widows whose pension was not increased when their husband died
- Widows whose pension is now correct, but who think they may have been underpaid while their late husband was still alive, particularly if he reached the age of 65 after March 17, 2008
- Over-80s who are receiving a basic State Pension of less than £80.45
- Widowers and heirs of married women , where the woman has now died but was underpaid state pension during her lifetime
- Divorced women , particularly those who divorced after retirement, to check that they are benefiting from the contributions of their ex-husband
How to check if you are affected or make a claim
A phone call to the pension service is the quickest way to find out if you are eligible for a State Pension refund. The best number to call is 0800 731 0469. The full contact details can be found on the Gov.uk website.
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