DWP Plans to Compensate Pensioners Who Received Lower State Pension Payments Than They Should Have

The Department for Work and Pensions (DWP) is in the process of disbursing £6,000 in State Pension payments to individuals who have been receiving less than their entitled amount. This issue affects a portion of the 12.6 million individuals currently receiving the State Pension. While the majority of pension payments are accurate, unfortunately, some individuals have been underpaid.

Pensions Minister Paul Maynard MP has confirmed that the DWP is making strides in addressing this issue. In a written response to Labour MP Dr. Rosena Allin-Khan, Maynard stated that the DWP is on track to complete the review for Category BL and Category D cases by the end of 2023.

The groups that will benefit from this review are married women or those in civil partnerships (Category BL) and individuals over 80 years old (Category D). Once any inaccuracies in their State Pension payments are rectified, they will also receive arrears for the amount owed to them.

Maynard, in a statement to the DWP, emphasized the government’s dedication to rectifying underpayments as swiftly as possible. He disclosed that the overall rate of State Pension underpayment due to official error remains low at 0.5 percent in 2022/2023. Nevertheless, the DWP is committed to addressing any errors that do occur.

According to the latest statistics provided by the DWP, a total of 82,323 underpayments, amounting to £497 million, have been identified between January 11, 2021, and October 31, 2023. This highlights the scale of the issue and the importance of rectifying these errors promptly.

Furthermore, with 595,964 State Pension awards reviewed, average payouts have ranged from £2,245 to £12,383, highlighting the significance of these discrepancies. It has been emphasized that Category BL and Category D cases are expected to be resolved by the end of 2023.

The Home Responsibilities Protection (HRP) corrections activity, which began in the autumn of 2023, is also underway. Customers affected by this will be notified by HMRC and invited to make a claim for any missing HRP. After their National Insurance records have been amended, the DWP will ensure that any necessary State Pension adjustments are made, guaranteeing that ongoing payments are accurate and any arrears are promptly paid.

This initiative is crucial in addressing various underpayment categories, such as married individuals or those in civil partnerships, widows, widowers, and individuals over the age of 80. By rectifying these discrepancies, the DWP aims to ensure that every beneficiary receives the correct amount of State Pension they are entitled to.

In conclusion, the DWP is taking necessary steps to remedy underpaid State Pension amounts. The Department’s commitment to promptly addressing errors and ensuring that individuals receive their entitled payments is crucial in providing peace of mind and financial security to pensioners.