DWP error means thousands of people born in these years are owed substantial amounts

25 July 2024 , 21:12

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DWP error means thousands of people born in these years are owed substantial amounts

The Department for Work and Pensions (DWP) has revealed that thousands of Brits are missing out on an average of £7,293 each due to a state pension error - and some could be owed even more

Thousands of individuals are losing out on an average of £7,293 each due to a blunder by the Department for Work and Pensions (DWP) concerning state pensions.

The DWP’s Annual Report and Accounts 2023-24, released this week, scrutinises all aspects of the department’s spending in the most recent financial year, including underpayments of benefits owed to those who should have received them, and identified fraudulent benefits payouts. 

The report highlights the issue of state pension ’underpayments’, where people did not receive money they were entitled to. The DWP is currently undertaking what it calls a state pension underpayment ’LEAP’ exercise, aiming to identify underpayments owed to several groups, according to the Express.

Three main groups are owed money include people who are married or in a civil partnership who reached state pension age before April 6, 2016. These should be entitled to a Category BL uplift based on their partner’s National Insurance contributions. 

Other underpayments include those on missed conversions - these are people who have been widowed and their State Pension was not increased to include any amounts they are entitled to inherit from their late husband, wife or civil partner. Those who reach the age of 80 and who are receiving some state pension but ’less than £101.55 and may therefore be entitled to a Cat D state pension of £101.55 a week are also affected.

The DWP report disclosed: "That means people born in years before 1944 could be owed money under the third category, and people who hit pension age before April 2016, so born before 1959 or 1960 depending on your age, could qualify under the first category.", reports Leicestershire Live. 

"Between January 11, 2021 and the end of March 2024, the checking process has identified 99,558 underpayments, with a total of £594 million owed. Current estimates of the total arrears due is £970 million to 133,000 pensioners and recognised a provision of £369 million, reflecting the outstanding amounts it still expects to repay."

It added: "Last year it was estimated that DWP underpaid £1.17 billion to 170,000 pensioners The final total value of the underpayments will only be confirmed by the completion of the exercise."

It’s been calculated that approximately 133,000 pensioners are still due to receive an average of £7,293 each, judging from the £970 million owed to them. Yet, this figure may increase as the investigation progresses.

James Turner