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State pensions Underpayment warning for widows and widowers
The Guardian
|August 10, 2024
A new group of people who have been underpaid the state pension appears to have come to light, with "many thousands" potentially left out of pocket.
Since 2021 the Department for Work and Pensions has been trying to put right state pension errors relating to several groups of people.
Former pensions minister Steve Webb, now a partner at the consultancy LCP, says his team has uncovered what looks like a new category of widows and widowers on the receiving end of DWP errors, with some underpaid by more than £2,000 a year.
In 2020 the DWP confirmed there was a significant problem, and the next year the National Audit Office said most of those affected were likely to be women. It said the problems had been fuelled by complex state pension rules and outdated IT systems.
As part of the DWP's correction exercise, more than £280m has been paid out to almost 23,000 people who wrongly missed out on inherited state pension from their late husband, wife or civil partner.
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