130,000 Lose Out In £1bn Shock Pensions Blunder

Pensioners miss out on £1bn due to DWP blunders

Pensioners lost out on £1billion through underpayments because of outdated Government IT systems and complex rules, a damning report has found.

The National Audit Office (NAO) investigation discovered one victim was denied £128,000 to which they were entitled.

Errors going back as far as 1985 were unearthed with one in eight arrears paid amounting to £40,000 or more.

Those affected are mostly women. The DWP underpaid 134,000 people and those traced will be get an average of £8,900.

The Department for Work and Pensions has been mired in the scandal since former pensions minister Sir Steve Webb uncovered scores of mistakes last year.