In a major development, the Department for Work and Pensions (DWP) has come under scrutiny after reports revealed that bereaved families could lose out on thousands of pounds in unclaimed state pension underpayments. The department had previously deleted pension records four years after the death of a pensioner and their surviving spouse—a policy now paused until 31 December 2026.
This revelation comes as thousands of families who lost loved ones—primarily older married women and widows—were notified that DWP is ending its investigation into underpaid pensions. The move has sparked outrage, with campaigners and families calling it “a disgrace” and urging immediate action.
Why Were State Pensions Underpaid?
The issue largely stems from systemic miscalculations in pensions for older women who relied on their husband’s National Insurance record. Mistakes in updating records after retirement or bereavement meant many women received less than they were entitled to.
Underpaid pensions have ranged from a few hundred pounds to over £100,000. DWP has acknowledged that over 850,000 cases have been reviewed as of late 2024, but many still await answers.
Who Can Claim Missing Pension Payments?
If a relative passed away and may have been underpaid, the following next of kin may be eligible to claim:
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Surviving spouses
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Children or legally appointed executors
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Legal representatives with supporting documents
Even if the pensioner has died, family members can submit evidence to recover underpaid amounts, provided they can offer the right documentation.
What Records Do Families Need?
To reopen a claim, families are advised to gather:
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Bank statements showing pension payments
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Original DWP letters or state pension award documents
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Statements from Post Office Card Accounts or building societies
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Any paperwork from the period before and after retirement or death of a spouse
Documents showing changes in pension after turning 80 may also be useful for comparison with the official pension rates of that time.
Why the Records Matter
In 2021, DWP admitted that records were deleted too soon, making it difficult for families to prove underpayments. Since January 2021, deletion has been paused. However, affected families now face the task of acting as “private detectives,” according to experts like Steve Webb from LCP.
The Liberal Democrats have demanded transparency, and recent responses from the DWP confirm that the department will review cases if families can provide supporting documents.
How to Check for Underpayments
Families should take the following steps:
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Compare old payment figures with the official pension amounts for the relevant period.
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Use GOV.UK’s pension checker and resources.
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Contact DWP or request support via a local MP if no response is received.
Experts suggest focusing on the months:
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Before and after the spouse turned 65
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After the spouse passed away
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Before and after the widow turned 80
This comparison helps identify discrepancies in entitlement.
Government Response and Ongoing Efforts
A DWP spokesperson stated:
“We always encourage next of kin and representatives of deceased customers to contact us if they have relevant proof such as historical letters from the department so we may be able to review the customer’s state pension award.”
Despite this, campaigners stress that thousands may still go uncompensated unless they act now.
FAQs
What is the DWP underpayment scandal about?
Over 850,000 pensioners—mostly women—were found to be underpaid due to DWP miscalculations. Surviving family members may be entitled to back payments.
Can families of deceased pensioners claim unpaid state pensions?
Yes. If supporting documents such as DWP letters or bank statements are available, next of kin may file for a review.
What records do I need to claim underpaid pensions?
Documents like historical DWP letters, old bank statements, or Post Office Card Account records showing pension deposits.
Why were the records deleted by DWP?
Before 2021, DWP deleted pension records four years after both pensioner and spouse passed away. This made many cases untraceable.
How long do families have to act?
Record deletion has been paused until 31 December 2026, giving families a window to retrieve and submit supporting evidence.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.