The Department for Work and Pensions (DWP) owes an average of £7,293 each to thousands of pensioners following a series of underpayment errors.
Why it matters: The oversight has caused thousands of Brits to miss out on their rightful state pensions, with some potentially owed even more.
The details:
- The DWP’s Annual Report and Accounts for 2023-24 revealed significant financial discrepancies in pension payments.
- The DWP is undertaking a state pension underpayment ‘LEAP’ exercise to identify and compensate those who did not receive the full benefits they were entitled to.
- Three key groups have been identified as being owed money: those married or in a civil partnership who reached pension age before April 6, 2016; widowed individuals whose pensions were not adequately adjusted; and individuals aged 80+ receiving less than £101.55 per week.
- Between January 11, 2021, and the end of March 2024, 99,558 underpayments have been identified, totaling £594 million.
Current estimates suggest that £970 million is due to around 133,000 pensioners, with a provision of £369 million reflecting the outstanding amounts still to be repaid.
Who is affected:
- People born in years before 1944 could be owed money under the third category.
- Those who hit pension age before April 2016 (born before 1959 or 1960, depending on their age) could qualify under the first category.
The final total value of the underpayments will only be confirmed once the exercise is complete. The average amount owed to each pensioner may increase as further underpayments are identified.
What’s next: The DWP has acknowledged these shortcomings and is working to ensure that all affected individuals receive the payments they are due as part of broader efforts to address and rectify financial discrepancies within the pension system.
Full story
The Department for Work and Pensions (DWP) owes an average of £7,293 each to thousands of pensioners. This is due to a series of underpayment errors. The DWP recently released its Annual Report and Accounts for 2023-24.
It revealed significant financial discrepancies in pension payments. The DWP is working to rectify the underpayments. The initiative is known as the ‘LEAP’ exercise.
It aims to identify and compensate those who did not receive the full benefits they were entitled to. Three key groups have been identified as being owed money. The first group is people who are married or in a civil partnership and who reached pension age before April 6, 2016.
They may be entitled to a Category BL uplift based on their partner’s National Insurance contributions. The second group is widowed individuals whose pensions were not adequately adjusted. They may be entitled to inherit amounts from their late spouse or civil partner.
Pension underpayment correction initiative
The third group is individuals who have reached age 80 and are receiving less than £101.55 per week. They may be entitled to an uplift to the Category D rate of £101.55 per week.
The report states that between January 11, 2021, and the end of March 2024, 99,558 underpayments have been identified. This totals £594 million. Current estimates suggest that £970 million is due to around 133,000 pensioners.
A provision of £369 million reflects the outstanding amounts still to be repaid. The final total value of the underpayments will only be confirmed once the exercise is complete. As of now, the average amount owed to each pensioner is £7,293.
This figure might increase as further underpayments are identified. The DWP has acknowledged these shortcomings. It is working to ensure that all affected individuals receive the payments they are due.
The process continues as part of broader efforts to address and rectify financial discrepancies within the pension system.
- Express.”People born in these years owed £7,293 each after DWP pension mistake”.
- Mirror.”DWP error means thousands of people born in these years are owed thousands each”.
- BirminghamMail.”State pensioners urged to ‘check eligibility’ ahead of £5,000 back payments from DWP and HMRC”.