The UK’s Department for Work and Pensions (DWP) is facing another wave of criticism over a growing state pension underpayment scandal—this time impacting thousands of older women.
Many of these women have gone years without receiving the full pension they were entitled to, raising serious concerns about errors in the government’s pension processing systems.
This new wave of pension errors follows previously acknowledged issues, yet the scale and long-term impact continue to unfold, with some women discovering they were shortchanged by thousands of pounds.
Who Is Affected?
The underpayments mainly impact older women who fall into the following groups:
- Married women who were entitled to receive 60% of their husband’s basic state pension.
- Widowed women who should have had their pensions increased after their husband’s death.
- Women over 80 who qualified for a minimum state pension but were not automatically upgraded.
- Women with interrupted work histories, who relied on national insurance credits such as Home Responsibilities Protection.
For years, these women received lower pension payments due to errors in their entitlements not being automatically updated or calculated properly.
How Much Has Been Lost?
The financial impact of these underpayments is significant. The government has acknowledged that thousands of women are due substantial back payments—many in the £5,000 to £10,000 range.
Some of the highest underpayments have reached £30,000+, particularly in cases where the individual has been receiving reduced pensions for a decade or longer.
Here’s a breakdown of estimated figures:
| Group Affected | Average Underpayment | Potential Reimbursement |
|---|---|---|
| Married Women | £6,500 | Backdated to retirement age |
| Widowed Women | £10,000+ | Lump sum owed from spouse’s death |
| Women Over 80 | £3,000 | Minimum pension rights restored |
| Deceased Claimants’ Families | Varies | Estates may be reimbursed |
Why the Errors Happened
In most cases, underpayments occurred due to manual processing failures, incomplete records, and a lack of automatic updates when a spouse died or turned 65.
Many older women were unaware they had to request an upgrade, which should have been applied automatically.
Additionally, due to outdated policies and complicated eligibility rules, some records were never corrected or updated—even when all conditions were met.
What Is Being Done Now?
The DWP has launched a correction initiative, assigning teams to review affected records and begin issuing backdated payments. However, the process is expected to continue for several years due to the sheer number of cases.
If you believe you were underpaid, or if you’re a family member of someone who has passed away, you can contact the DWP and request a pension review.
You’ll need key details such as National Insurance numbers, dates of retirement, and relevant marital or widowhood information.
This renewed DWP scandal underscores the importance of pension transparency and the need for stronger systems that protect the rights of older women, many of whom are among the most financially vulnerable. With millions of pounds potentially still owed to thousands of retirees, now is the time to act.
If you or a loved one suspect an underpayment, it’s essential to follow up immediately with the DWP. The earlier you act, the sooner your record can be reviewed—and any owed money returned.
FAQs
How can I check if I was underpaid my pension?
You can contact the Pension Service to request a review. You’ll need personal details such as your National Insurance number and marital status.
Can I claim a pension underpayment on behalf of a deceased relative?
Yes. If your spouse or family member was underpaid and has passed away, you may be eligible to claim reimbursement as part of their estate.
How long will the DWP take to correct these underpayments?
The correction process is ongoing and could take until 2027 to resolve completely, depending on the complexity and number of cases.