Tens of thousands of UK pensioners have been short-changed on their State Pension, with the Department for Work and Pensions (DWP) confirming that more than £804 million in payments were missed. Since January 2021, a large-scale review has uncovered over 130,000 underpaid cases—many going back years—with some individuals owed up to £12,000.
This issue affects some of the most vulnerable groups, especially older women, widowed pensioners, and people over 80. If you think you or a loved one might be affected, now’s the time to check your records and claim what’s rightfully yours.
What Happened
Between January 11, 2021, and March 31, 2025, the DWP found 130,948 pensioners had not received the correct amount of State Pension. These underpayments happened due to outdated systems, admin errors, and the failure to adjust pensions following key life events like marriage or the death of a spouse.
While the government has corrected many cases, thousands are still under review—especially where documents are missing or the history is complex. Sadly, some pensioners affected have passed away without ever receiving their full entitlement.
Who got Missed
The majority of those affected fall into three main categories:
1. Married Women (Category BL)
These women were entitled to 60% of their husband’s basic State Pension once he reached pension age. In many cases, their payments were not automatically updated, leaving them on a much lower amount.
2. Widowed Pensioners
Many widowed individuals did not see their pensions recalculated after their spouse died. Some could have inherited part of their late partner’s pension, but this was never applied.
3. People Over 80 (Category D)
UK pension rules say those aged 80 and over may be entitled to an increased pension regardless of their National Insurance record. But thousands never saw this increase.
Some people qualify under more than one category, leading to larger back payments.
How Much
Here’s a look at the average back payments for each affected group:
| Group | Average Arrears |
|---|---|
| Widowed Pensioners | £11,725 |
| Married Women (Cat BL) | £5,553 |
| Over 80s (Cat D) | £2,203 |
In addition to these, a separate correction linked to Home Responsibilities Protection (HRP)—a scheme that helped carers and parents protect their pension entitlement—found 5,344 more underpayments worth £42 million as of September 2024.
Calls for Change
Former pensions minister Sir Steve Webb has been a key figure in exposing this issue. He has urged the government to act quickly, warning that some women have been underpaid for decades. Financial analyst Rachel Vahey from AJ Bell has called it one of the most serious benefit errors in years, urging the DWP to deliver quick and fair compensation.
This scandal has highlighted how broken some aspects of the pension system have become—particularly for those relying on it most.
DWP Response
A DWP spokesperson acknowledged the error and said the department is committed to fixing the problem:
- Most eligible pensioners have already received back payments
- A small number of cases are still being reviewed
- Some files are delayed due to missing documentation
While progress has been made, many feel that more needs to be done—and sooner rather than later.
What You Can Do
If you think you or someone you know has been underpaid, here’s what you should do:
- Check your pension records
Especially if you’re a married woman, widowed, or over 80. Compare your payments against expected entitlement. - Contact the DWP Pension Service
Ask for a review of your case and raise any concerns directly. - Gather documents
This may include your spouse’s National Insurance record, pension statements, or death certificate. - Get help if needed
Charities like Age UK and Citizens Advice can offer free support and guidance.
You don’t need to navigate this alone—and if you are owed money, it’s worth chasing.
FAQs
Who is affected by pension underpayments?
Mainly married women, widows, and people over 80.
How much could I be owed?
You might be owed between £2,000 and £12,000.
What caused the underpayments?
Admin errors and outdated pension processes.
How do I check if I was underpaid?
Contact the DWP or review your pension record.
Can expats be affected too?
Yes, especially if their pension wasn’t updated.
