The Department for Work and Pensions (DWP) has issued an update after a blunder resulted in thousands of pensioners missing out on approximately £11,000 each.
In 2021, the DWP embarked on a mission to rectify past errors after a Legal Entitlements and Administrative Practice exercise revealed that around 119,050 pensioners were receiving less state pension than they were entitled to. The investigation focused on suspected underpayments affecting three specific groups of retirees.
The historical payment error is now being addressed with backdated payments, with the average affected retiree having received a whopping £11,905.
The DWP has confirmed they have finished reimbursing two affected groups; married women and civil partnerships and those over the age of 80.
The department aims to complete all repayments to the widowed cases by the end of the year, wrapping up the last group affected by the error, and they appear to be on track to meet this target.
This is the second largest group affected by the underpayments, with 39,706 cases identified by the department. The average arrears for widowed retirees has also been the highest at roughly £11,905 average, just over a year’s worth of new state pension.
Married retirees received an average backdated payment of £5,591, around six months’ worth of state pension, and those over the age of 80 received roughly £2,202 on average, or nine weeks’ worth of new state pension.
Since January 2021, the DWP has been meticulously reviewing cases to find retirees who may be eligible for additional funds, showing a steadfast dedication to correcting a significant error.
Initially casting a wide net over all three groups, the department is now down to the last group and anticipates rectifying the issue by year’s end.
The DWP also pointed out that in some instances, an underpayment in state pension coincided with an overpayment in other benefits like Pension Credit, which is aimed at low-income retirees, stating: “There was no net underpayment to the individual.”
Moreover, there have been situations where the underpaid retiree has passed away, leaving the department unable to determine the rightful recipient of the owed arrears.
