More than £800m of state pension underpayments have been identified in a government correction exercise – with older Britons urged to check if they’ve been affected.
The Department for Work and Pensions has published an update of cases checked as part of a review that started in January 2021.
So far – between 11 January 2021 and 31 March 2025 – the process has found 130,948 underpayments, amounting to £804.7m owed.
11,000 new cases were identified in the past six months.
Why have there been underpayments?
Those affected by errors include:
- Married women on low state pensions whose pension was not automatically uplifted when their partner retired;
- People whose pension was not automatically reassessed when their spouse died;
- Over-80s whose state pension entitlements were not increased automatically.
In some cases, people may have received an overpayment of another benefit, such as pension credit, according to the DWP.
It also said there may be cases where the person has died and the department has not been able to identify an estate to which to pay arrears.
Why impact of ‘scandal’ could last for decades
Investment experts at AJ Bell have described it as “one of the biggest benefit scandals of modern times”.
And despite “progress”, this “appalling situation is not yet resolved”, head of public policy Rachel Vahey said.
“The DWP has confirmed it has completed the vast majority of reviews, but it will take another two years, to the end of March 2027, before all cases are resolved,” she added.
“Once all compensation has been paid, the government needs to undertake a comprehensive review of its processes to ensure these mistakes are never repeated.
“Trust in pensions is fragile at the best of times and failures such as this will not help.
“Sadly, it will likely take years, if not decades, to rebuild the confidence lost as a result of this scandal.”
What you can do
Vahey said it is “absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible”.
The DWP is calling on customers to provide additional information, but that relies on everyone getting online and engaging with the DWP.
You can check if you’ve been underpaid and whether you need to make a claim by contacting the Pension Service.
