Older people urged to check DWP State Pension letters

Over £800 million in State Pension underpayments has been unearthed so far in a correction exercise addressing historical errors, according to the latest data from the Department for Work and Pensions (DWP). The DWP confirmed last week that between January 11, 2021 and March 31, 2025, the review process identified 130,948 underpayments, amounting to a total of £804.7 million owed.

DWP noted that, in some instances, individuals may have received an overpayment of another benefit such as Pension Credit. It also acknowledged that there might be cases where the individual has passed away and the DWP has been unable to locate an estate to pay the arrears.

Those impacted by these errors include married women on low State Pensions whose pension was not automatically increased when their partner retired, individuals whose pension was not automatically reassessed following the death of their spouse, and those over 80 whose State Pension entitlements were not automatically uplifted.

The DWP stated that cases may be reviewed for more than one potential error, meaning a claim could be counted in multiple categories.

Another State Pension correction exercise is investigating missing historical periods of Home Responsibilities Protection (HRP), which have resulted in inaccurate State Pension payments.

Between January 8 and September 30, 2024, this exercise identified 5,344 underpayments, with total arrears of approximately £42 million.

A representative for the Department for Work and Pensions (DWP) has made a statement: "Our priority is ensuring pensioners receive the dignity and security they deserve in retirement and that state pension underpayment rates remain as low as possible."

They added: "We have now completed the vast majority of cases in the exercise as planned with a small number of outstanding cases due to further documentation needed from the customer."

The DWP's recent statistics reveal that there are 13 million individuals, both within the UK and overseas, who are beneficiaries of the State Pension. This includes 4.1 million on the New State Pension and 8.8 million on the Basic State Pension.

While most State Pension disbursements are correct, ex-DWP worker Sandra Wrench is urging all pensioners to scrutinise their annual uprating letter – expected this month. She highlights how those who started receiving their State Pension before April 2016 can spot a potential error in payments and take action.

Speaking with the Daily Record, Sandra remarked: "There has been a lot of coverage in the media about the underpayment of the State Pension, but not a lot of information about how pensioners can check for themselves whether they are in receipt of the correct amount or not."

A veteran DWP employee, after clocking 42 years of service with 18 in State Pension, has shared valuable insights for pensioners to actively check if they're receiving the correct amount. "Having worked in DWP for 42 years, 18 years of which were spent on State Pension, my advice to pensioners is to be proactive, and the following information may be of use in ascertaining whether you have been underpaid or not."

If you qualified for the State Pension before April 2016 and are entitled to the Basic State Pension, be mindful of the following: Widows and individuals who are divorced ought to receive a full basic state pension, now pegged at £176.45 per week, with additional and graduated pensions paid separately.

Married women and persons over 80 should be obtaining a minimum of 60 per cent of the Basic State Pension rate, currently at £105.70. Any extra pension and graduated pension come alongside this base figure.

Moreover, for those aged over 80 years, there's an added 25 pence age addition, resulting in a total of £105.95. The age addition of 25 pence has stayed unaltered for a considerable time.

Should you suspect your State Pension isn't accurate, Sandra instructs to contact DWP using their change of circumstances hotline at 0800 731 0469. Report that you believe to have been underpaid and request an evaluation of your State Pension.

Sandra sheds light: "One possible reason is that women who had their children prior to April 1978 had no protection for their State Pension if they stayed at home to look after their children, as Home Responsibilities Protection (HRP) was not introduced until April 1978, and you got this protection until your child was 16. In April 2010 HRP was replaced by National Insurance (NI) Credits for parents and carers, and you got these credits until the child was 12."

In a revelation made in July 2023, the government's Department for Work and Pensions (DWP) issued a warning that numerous women who bore children between 1978 and 2000 might have missed out on crucial Home Responsibilities Protection (HRP) credits for their National Insurance records, an oversight that could lead to lower State Pension payments. Notably, prior to the year 2000, parents weren't required to list their National Insurance numbers when applying for child benefit.

HMRC is on a mission to scrutinise historical records; however, there's a chance that earlier data may be incomplete. Women are being urged to review their NI contribution history for any non-qualifying years going back to 1978, which may coincide with times when they had children under the age of 16.

If you discover any gaps, it's important to make a claim for HRP.

For those without computer access, assistance is available via the NI helpline at 0300 200 3500.

Divorced women need to be aware of the implications on their state pension, according to Sandra. She advised: "If you get divorced after you have claimed your state pension, you need to notify DWP on 0800 731 0469 as this is a change of circumstances, and if you have less than 100 per cent Basic State Pension, it could be increased to 100 per cent using your ex-husband's NI contributions."

Sandra also explained: "Any additional pension and graduated pension you have, will be paid in addition to your Basic State Pension. DWP will not know that you are divorced unless you tell them. You will need to send in your decree absolute to DWP for confirmation of your date of divorce."

She clarified further that once your State Pension has been awarded, it is yours to keep and cannot be taken away; thus, even if you're divorced when you claim your State Pension and entitled to 100 per cent Basic State Pension, remarrying shortly thereafter won't impact your right to the full 100 per cent Basic State Pension.

Sandra pointed out that this benefit replaced Widows Benefits in 2017 and must be claimed before reaching State Pension age. She asserted: "You must claim within three months of your spouse/civil partner's death to get the full rate of the benefit. You can claim up to 21 months after their death but you will get fewer payments."

For those who are receiving Basic State Pension and require support, the DWP helpline is available at 0800 151 2012.

Furthermore, as of February 9, 2023, parents with dependent children who are cohabiting have been eligible to apply for bereavement benefits, due to a change in legislation.