The Department for Work and Pensions (DWP) has identified significant underpayments in State Pensions, amounting to approximately £571.6 million owed to over 97,000 pensioners as of February 2024. This issue predominantly affects married women, widows, and individuals over 80, who may be eligible for substantial back payments. This article provides a comprehensive overview of the situation, including eligibility criteria, steps to verify potential underpayments, and important dates to consider.
Overview of the £571.6 Million State Pension Underpayments
Between January 2021 and February 2024, the DWP conducted a thorough review of State Pension records, uncovering widespread underpayments. The total amount identified exceeds £571 million, with an average arrears payment of approximately £5,713 per individual. The affected groups include married women, widows, and those over 80, many of whom were unaware of their entitlement to higher pension rates.
Breakdown of Affected Groups
The underpayments primarily impact the following categories:
| Category | Cases Reviewed | Underpayments Identified | Average Arrears Payment | Total Amount Repaid |
|---|---|---|---|---|
| Married Women | 317,955 | 43,367 | £5,713 | £243.8 million |
| Widows | 298,099 | 21,175 | £12,486 | £262.3 million |
| Individuals Over 80 | 89,634 | 32,474 | £2,192 | £65.5 million |
Data as of February 2024
Eligibility Criteria for Back Payments
To determine eligibility for back payments, individuals should assess whether they fall into one of the following categories:
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Married Women: Those who reached State Pension age before April 2016 and are entitled to a 60% basic State Pension based on their husband’s National Insurance contributions.
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Widows: Women who may have inherited an enhanced pension after their spouse’s death but did not receive the correct amount.
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Individuals Over 80: Persons who turned 80 before April 2016 and are receiving a State Pension of less than 60% of the basic amount.
It’s important to note that some individuals may need to proactively contact the DWP to have their pensions reassessed, especially if they believe they have been underpaid.
Steps to Verify Potential Underpayments
If you suspect you have been underpaid, consider the following steps:
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Review Your State Pension: Check your State Pension statements to identify any discrepancies.
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Use Online Tools: Utilize online calculators designed to help individuals determine if they’ve been underpaid.
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Contact the DWP: Reach out to the DWP directly to inquire about your State Pension and request a reassessment if necessary.
Important Dates and Future Updates
The DWP has committed to addressing these underpayments and aims to complete the review and correction process by the end of 2024. Regular updates on progress are published, with the most recent report released in September 2024.
Also Read: £780 DWP Extra Benefits Payment for UK Citizens – Check Eligibility & Payment Dates
Frequently Asked Questions (FAQs)
Q1: How do I know if I’m eligible for a back payment?
If you are a married woman, widow, or over 80 and reached State Pension age before April 2016, you may be eligible. Review your pension statements and contact the DWP for confirmation.
Q2: What should I do if I believe I’ve been underpaid?
First, use available online tools to assess potential underpayment. Then, contact the DWP to request a reassessment of your State Pension.
Q3: Will the DWP contact me if I’m owed money?
The DWP has been reaching out to individuals identified as underpaid. However, if you haven’t been contacted but believe you’re eligible, it’s advisable to initiate contact yourself.
Q4: How long will it take to receive back payments?
The DWP aims to complete all corrections by the end of 2024. The timeline for individual payments may vary, so staying informed through official updates is recommended.
Q5: Are there any tax implications for receiving a lump-sum back payment?
Lump-sum back payments may have tax implications. It’s advisable to consult with a tax professional or refer to official guidelines to understand how it may affect your tax situation.
Staying informed and proactive is crucial to ensure you receive any entitlements due. Regularly reviewing your State Pension and engaging with the DWP can help rectify any discrepancies promptly.
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