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Glasgow Live

National

Linda Howard & Sophie Buchan

State Pension backpay as married and widowed woman could be due over £10,000

State Pension DWP Department for Work and Pensions Helen Morrissey Steve Webb Widows

Married and widowed women over the State Pension age could be due over £10,000 in backdated payments, according to latest figures.

It comes as new data from the Department for Work and Pensions (DWP) shows that £209.3 million in State Pension underpayments have been repaid to 31,817 pensioners. These payments have since been paid after the correction exercise began back in January 2021 and the end of October 2022.

Some of the people who have been underpaid include pensioners who were married and should have received an upgraded State Pension, people who were widowed as well as those over 80 years old.

The new DWP figures, as reported by the Daily Record, 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.

While the correction exercise affects the majority of women, some men may have been underpaid too with one pensions expert stating that the total repaid so far is a "drop in the ocean" 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.

“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.”

Ms Morrissey added that women retiring under the old Basic State Pension system are primarily affected by underpayments.

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

Sir Steve Webb, a former pensions minister who is now a partner at consultants LCP highlighted DWP figures suggesting that a total of 237,000 pensioners are affected by payment errors, with around £1.46 billion owed - leaving more than £1 billion still outstanding.

Sir Steve said: “With cost of living pressures affecting many elderly people on low incomes, it is essential that the pace of fixing these errors is stepped up and people get the money they are due as soon as possible.”

Tom Selby, head of retirement policy at AJ Bell, said: “It is absolutely critical that all those affected by this scandal receive the money they are owed as quickly and efficiently as possible.

“For retirees on low incomes preparing for a cold winter, a cash windfall worth thousands of pounds could prove a lifeline after years surviving on an artificially low income due to the DWP’s errors.”

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% 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 but full contact details can be found on the Gov.uk website here.

A DWP spokesperson said: “The action we are taking now will correct historical underpayments made by successive governments. We are fully committed to addressing these errors, not identified under previous governments, as quickly as possible.

“We have set up a dedicated team and devoted significant resources towards completing this, with further resources being allocated throughout 2023 to ensure pensioners receive the support to which they’re entitled.”

State Pension Triple Lock

Chancellor Jeremy Hunt recently confirmed that the Triple Lock will be used to uprate the State Pension next year. This guarantees that State Pensions increase by September’s inflation figure, wages or 2.5%, whichever is higher.

The guarantee means that retirees are heading for a 10.1% increase to the State Pension from next April.