A former pensions minister is urging widowed women on the Basic State Pension (before 2016) who lost their husband, to check that they received an uplift from the Department for Work and Pensions (DWP). Sir Steve Webb, now a partner at LCP (Lane Clark & Peacock) first highlighted the State Pensions underpayments two years ago.
During an appearance on this week’s Martin Lewis Money Show Live, which focused on State Pensions and how to maximise retirement payments, Sir Steve said the DWP is trying to find the women affected, reassess their State Pension and pay back any money they are owed. He urged anyone watching to check how much they receive and contact DWP to make sure it is correct.
The latest release from the DWP into State Pension underpayment errors shows that between January 2021 and February 2023, the administration exercise identified 46,716 cases were due arrears of £300.1 million. Arrears payments for widows affected by the error average £11,521.
The previous update issued in November 2022 indicated 31,817 underpayments had been identified and £209.3 million repaid to claimants. However, it is estimated as many as 237,000 pensioners have been underpaid around £1.46 billion.
Sir Steve told Martin Lewis: “Tens of thousands of women who lost their husbands who were already getting a pension, but when the husband died they (DWP) should have reassessed their State Pension and in many cases, that just didn’t happen.
“And there are still to this day, often not getting the right amount.”
He added: “They’re trying to find these people slowly, but if you’re a woman who lost your husband when you were getting this old pension and it didn’t change, you need to get on to them and make sure they’re paying you the right pension.”
Below is an overview of the underpayment progress and the groups of women who may be affected.
State Pension underpayment progress - February 2023
Payments made between January 2021 and February 2023 are listed below.
Married (Cat BL)
- Cases reviewed: 82,225
- Underpayments identified: 22,276
- Average arrears: £6,630
- Total amount repaid: £147.7 million
Widowed
- Cases reviewed: 54,150
- Underpayments identified: 9,928
- Average arrears: £11,521
- Total amount repaid: £113.2 million
Over 80
- Cases reviewed: 37,163
- Underpayments identified: 14,512
- Average arrears: £2,710
- Total amount repaid: £39.3 million
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
You can also find full guidance on transferring Basic State Pension payments on GOv.UK here.
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.
Earlier this year, 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.”
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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