An ‘error’ made by the Department for Work and Pensions (DWP) could mean that thousands of people are being underpaid in state pension. Now, experts are issuing a fresh warning to older women who reached state pension age before April 2016, as they may be owed as much as ‘£7,000 in back pay’.
Among them is Sue Learner at care home reviewer Homecare.co.uk who explained the discrepancy is largely due to administration errors and a failure to automatically increase the state pension of women when their hubsands reached pension age.
She said: “Women most likely to have been underpaid include widows, divorcees and those who depend on their husband’s pension contributions for some of their pension entitlement. Other eligible women are those who reached state pension age before April 2016 and women aged 80 and over.”
Sue’s thoughts come just months after a Freedom of Information (FOI) request by ex-pensions minister Steve Webb revealed that 1,859 men and women received letters from the DWP flagging possible state pension shortfalls.
These funds may range from just a couple of pounds to thousands, but will be kept by the Government if those affected do not write a reply to the DWP. As of August, 131 cases were linked to a married woman’s low pension that was not increased despite her husband’s retirement.
A staggering 1,671 unanswered DWP letters also regarded next of kin underpayments, with the vast amount reportedly directed to widows and widowers.
Webb, now a partner at Lane Clark & Peacock, previously told the Financial Reporter: “We know that well over 100,000 people were underpaid state pensions and DWP has spent more than three years trying to track them down In thousands of cases, the person who was underpaid is sadly no longer with us, but their heirs should still benefit from any underpayment.”
Among the women potentially eligible for back payments are those who divorced after retirement, widows, and wives with low pension entitlements. Approximately 24,000 others receiving the graduated retirement benefit from a scheme that ended in 1975 may also be eligible, according to Homecare.co.uk.
If you’re keen to find out what you may be owed, you can ring the Pension Service on 0800 731 0469. You can also write to the office at this address: The Pension Service, Post Handling Site A, Wolverhampton, WV98 1AF.
According to a previous Express report, the DWP said it can only work out the amount potentially owed when it receives a reply to the letter. If the DWP cannot trace a next of kin then any money owed will be retained by the Government.
For more information, head to the Government’s website.
