The Department for Work and Pensions (DWP) has recently revealed that a significant number of UK pensioners have been underpaid, with the total amount of owed state pension benefits reaching a staggering £804.7 million. Some individuals could be owed as much as £12,000. Since January 2021, the DWP has been conducting a review of pension payments, uncovering nearly 131,000 instances of underpayment. This issue has predominantly affected married women, widowed pensioners, and individuals over the age of 80.
Between January 11, 2021, and March 31, 2025, the DWP identified 130,948 cases of underpayment, with the total arrears exceeding £800 million. While some pensioners received overpayments in other benefits, in some cases, the person has already passed away, preventing the money from being paid to their estate.
The underpayment issue mainly affects the following groups:
- Married women who were on low state pensions and didn’t see their payments automatically increase when their spouse retired.
- Individuals whose pensions were not reassessed after their spouse died.
- People over 80 who missed out on an automatic increase in their pension.
- Some cases involve multiple errors, so pensioners may fall into more than one category.
So, how much could you be owed? The average amounts of underpayment reported by the DWP are:
- Widowed pensioners: £11,725
- Married women (category BL): £5,553
- People aged over 80 (category D): £2,203
In addition, there’s an ongoing correction process for Home Responsibilities Protection (HRP), which is addressing even more missing pension payments. As of September 2024, this process has uncovered 5,344 more cases, totaling £42 million.
Former pensions minister, Sir Steve Webb, has been instrumental in bringing attention to these errors. He pointed out that the HRP correction process is likely to result in more pensioners receiving the money they’re owed. He also noted that women have been the hardest hit by this issue—some have been underpaid for decades or even passed away without receiving their correct pensions. Sir Webb urged immediate action to rectify these errors, emphasizing, “This should never have happened in the first place.”
Industry reactions have been strong as well. Rachel Vahey from AJ Bell called the situation one of the “biggest benefit scandals” in recent years, stressing the need for a swift and efficient resolution, particularly for women who have been shortchanged by these errors.
In response, a DWP spokesperson reassured the public that the department is committed to ensuring that pensioners receive the dignity and security they deserve in retirement. While most of the underpayment cases have been resolved, a few are still pending, mostly due to missing documents.
This pension underpayment issue highlights serious flaws in the system, with the most vulnerable groups—widowed pensioners, married women, and those over 80—bearing the brunt. As the DWP continues to address these arrears, it’s essential that all affected pensioners receive the money they are rightfully owed. If you think you might be affected, it’s a good idea to check your pension payments and reach out to the DWP to make sure you aren’t missing out.
