Pensioners could be owed more than £8,900 each in pensions gaffe

According to the Department for Work and Pensions (DWP) human error and legacy IT systems have led to the underpayment of up to 134,000 pensions.

It has been estimated that more than £1 billion of UK state pensions has been underpaid due to these issues, with the average person owed around £8,900.

Spending watchdog, the National Audit Office (NAO), has revealed that the pension errors will mostly affect women and that the true cost of these issues will only be clear after the DWP has reviewed each case.

According to the NAO and DWP’s figures, pensioners who should have benefited from their spouse’s or civil partner’s national insurance (NI) record could receive £339 million, while widows and widowers who should have inherited more state pension entitlement could have up to £568 million of payments due.

An additional £146 million is owed to pensioners that didn’t see an increase in pension contributions when they turned 80.

Those affected by this gaffe will have first claimed state pension before April 2016.

Already, between 11 January and 5 September this year, the DWP has reviewed 72,780 cases identified as being at risk of underpayment and paid a total of £60.6 million to 11 per cent of these cases.

At the moment the DWP said it is prioritising individuals who fall into “at-risk” categories, including those who are widowed or over 80.

 

 

 

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