The UK government is in the process of correcting a massive state pension underpayment issue, with more than £800 million (approx. ₹8,300 crore) owed to over 130,000 pensioners—primarily older women. These underpayments stem from decades-old administrative errors that went unnoticed until recently. Here’s everything you need to know.
What Happened?
The UK’s Department for Work and Pensions (DWP) discovered a major fault in its historical pension payment system, resulting in thousands of pensioners receiving less than they were entitled to. The problem mainly affects:
- Married women whose pensions were not increased automatically after their husbands retired.
- Widows whose state pensions weren’t reassessed post the death of their spouses.
- Individuals over 80 years of age who were entitled to automatic increases but were overlooked.
Key Figures:
- Total underpaid: £835 million (and counting)
- Number of affected individuals: Over 130,000
- Average amount owed:
- Married Women (Category BL): £5,553
- Widows: £11,725
- Over 80s (Category D): £2,203
What Caused the Error?
The issue goes back several decades. Pension records were not updated correctly for thousands of individuals due to manual oversight, missing documentation, and gaps in Home Responsibilities Protection (HRP)—a system that ensured caregivers (mostly women) wouldn’t lose state pension credits when taking time off work for family responsibilities.
Additionally, many automated systems failed to trigger proper increases or reviews for certain categories of claimants.
Ongoing Correction Drive
Since 2021, the DWP has been working through a complex correction process. The majority of reviews have been completed, but a small number remain under scrutiny due to documentation challenges. As of early 2025, the government claims to have repaid over £835 million in backdated pensions.
Special Focus:
- A separate track has identified another £42 million in missed entitlements specifically due to missing HRP records between January and September 2024.
How to Check If You’re Eligible
Although the DWP is reaching out to many individuals proactively, you or your relatives might still be eligible but not yet contacted. Here’s how to find out:
- Use the LCP Pension Underpayment Checker – Developed by pension consultancy LCP (Lane Clark & Peacock), this online tool helps individuals estimate whether they might be owed money.
- Contact the Pension Service (UK) – If your husband turned 65 before 17 March 2008 or if you fall under the widow or 80+ category, it’s wise to request a review directly.
- Document Review – Keep records of your pension statements, date of retirement, and marital status. These are essential for cross-verifying eligibility.
What the Government Says
A DWP spokesperson stated:
“We are fully committed to ensuring that individuals receive the State Pension they are entitled to and that these errors are corrected swiftly. We’ve made significant progress and will continue working until all eligible pensioners are repaid.”
However, many watchdogs and pension experts argue the system is still opaque, and more awareness is needed among pensioners and their families to proactively verify entitlements.
Final Thoughts
This correction drive is one of the UK’s largest financial redressal efforts in recent years. For Indians with relatives settled in the UK—especially older women who may have had interrupted careers due to caregiving—this could be a significant opportunity to recover unpaid pension dues. It’s also a case study in how legacy government systems, if not maintained or reviewed, can result in large-scale financial injustice.
Disclaimer:
This article is for informational purposes only. Paisonomics does not provide legal or financial advice. Readers are encouraged to consult official government portals or certified pension advisors for personalized guidance.
