130,000 have been given an update on a Labour Party government error that left them out of pocket for years.
The “biggest” Department for Work and Pensions scandal of all-time means 130,000 people are owed compensation over underpayments. 130,000 have been given an update on a Labour Party government error that left them out of pocket for years.
The DWP error meant some pensioners – mostly women – were not paid enough through their state pension, with some being underpaid for years.
As part of its compensation scheme, the DWP has now said 130,948 people were affected and that the average underpayment was just over £6,000. Rachel Vahey, head of public policy at AJ Bell, said this is “one of the biggest benefit scandals of modern times”.
READ MORE UK faces ‘five day’ mini-heatwave next week as BBC Weather issues warning
“Despite this progress, this appalling situation is not yet resolved. The DWP has confirmed they have 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 said.
Most of those affected are:
- Married women on low state pensions, whose pension was not automatically uplifted when their husband retired
- Widows or widowers whose state pension was not automatically reassessed when their spouse died
- Over-80s with low state pension entitlements who were not automatically uplifted when they turned 80
Ms Vahey said: “It is absolutely critical all those affected by this scandal receive the money they are owed as quickly and efficiently as possible.”
Former pensions minister Steve Webb, who is now a partner at financial consultancy Lane Clark & Peacock, said: “We have become so used to stories about state pension errors that it is easy to become dulled to the scale of what went wrong…
“The vast majority of those who lost were women, some of whom were underpaid for decades or even went to their grave never paid the right state pension.
“The remaining corrections need to be handled as a matter of urgency. This should never be allowed to happen again.”
A DWP spokesperson has issued a statement. They said: “We have now completed the vast majority of cases in the exercise as planned with a small number of outstanding cases due to further documentation needed from the customer.”
