The UK Department for Work and Pensions (DWP) has officially acknowledged a staggering £804.7 million in underpaid state pensions, affecting over 130,000 retirees nationwide. These underpayments, primarily impacting married women, widows, and pensioners over the age of 80, stem from systemic administrative errors and outdated procedures. As the government scrambles to correct the mistakes, many pensioners are being encouraged to review their state pension entitlements to ensure they are receiving their full benefits.
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DWP Underpayments: The Scope of the Issue
Between January 11, 2021, and March 31, 2025, the DWP reviewed state pension records and discovered 130,948 cases of underpayments. These errors resulted in missed payments totalling more than £804 million—a shocking figure that highlights long-standing flaws in the UK pension system.
Some pensioners are owed as much as £12,000, with average repayments ranging from £2,000 to £11,700, depending on the category of the pensioner. Tragically, many affected individuals passed away before the issue was uncovered, leaving families unable to reclaim the money owed.
Who Has Been Affected?
The majority of the underpaid pensioners fall into three primary categories:
| Group Affected | Description |
|---|---|
| Married Women | Many were entitled to increases when their spouse retired but did not receive them. |
| Widowed Individuals | Pensions not correctly updated after a spouse’s death. |
| Over-80s | Some never received automatic increases due after turning 80. |
Some pensioners may belong to more than one of these categories, leading to higher underpayment amounts.
Additional Errors: HRP Cases
The issue doesn’t stop there. A separate review involving Home Responsibilities Protection (HRP) has revealed 5,344 additional cases of underpayment, totalling £42 million as of September 2024. HRP was designed to protect the pension rights of individuals—mainly women—who left the workforce to care for children or dependents. Errors in how HRP was applied further contributed to the financial losses.
Voices Calling for Accountability
Sir Steve Webb, former pensions minister, has been a leading figure in exposing the scandal. He’s advocated for urgent reforms and pushed for timely back payments to affected pensioners. Webb also highlighted the tragic reality that some women were underpaid for decades and died without receiving the money they were due.
Rachel Vahey, a financial expert at AJ Bell, called this one of the most significant benefit scandals in recent memory. She stressed the importance of fast and fair compensation and demanded that DWP improve its systems to prevent future mistakes.
DWP’s Response and Next Steps
A spokesperson for the DWP acknowledged the severity of the underpayments and said they remain committed to correcting the errors. The department continues its review and encourages anyone who believes they may have been affected—or has a deceased relative who may have been underpaid—to come forward.
If you or someone you know fits into one of the affected categories, it’s crucial to check your state pension records. You can contact the Pension Service directly to inquire about potential underpayments.
The scale and depth of the pension underpayment scandal reveal serious flaws in the administration of state benefits. While the DWP is actively working to rectify the situation, many pensioners—especially women—have already suffered the financial and emotional consequences of decades-long mismanagement. The public outcry and pressure from experts will hopefully lead to more transparent, fairer processes moving forward.
FAQs
How do I check if I’ve been underpaid?
Contact the Pension Service or visit the official GOV. The UK website to review your pension records and entitlement history.
Can the estates of deceased pensioners claim the underpaid amount?
In some cases, yes. However, this depends on individual circumstances and the timeframe of the underpayment.
What is Home Responsibilities Protection (HRP)?
HRP was a policy designed to protect the state pension rights of individuals—mostly women—who left work to care for family members. Errors in applying HRP have led to additional underpayments.
Who was most affected by these pension errors?
Married women, widowed individuals, and pensioners over the age of 80 were the most affected groups.
Will affected pensioners receive interest on the amount owed?
Currently, repayments are being made without interest. However, there have been calls to include interest to fairly compensate those affected.
