Thousands could be missing out on an underpayment windfall due to a state pension error by the Department for Work and Pensions (DWP). The issue pertains to benefits owed to several groups who could be short of an average of £7,203 each.
The DWP is currently examining every aspect of expenditure in its most recent financial year. The details are outlined in its Annual Report and Accounts 2023-24, which was published this week.
This includes underpayments of benefits owed to those who should have received them, as well as identified fraudulent benefits payouts. The DWP is currently undertaking a state pension underpayment 'LEAP' exercise, with the aim of identifying individuals owed money.
- Read More: DWP issues fraud warning to Universal Credit and other benefit claimants who have a partner
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Three main groups include people who are married or in a civil partnership who reached state pension age before April 6, 2016. These individuals should be entitled to a Category BL uplift based on their partner's National Insurance contributions.
Other underpayments involve missed conversions - these are individuals 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, reports Bristol Live.
The DWP report highlighted: "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 the Express."
"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."
"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."
The figures suggest that approximately 133,000 pensioners are still awaiting an average payout of £7,293 each, based on the £970 million owed to them. This figure may increase as the review progresses.
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