Pensioners across the UK are being advised to pay close attention to their upcoming state pension uprating letters, as some may be entitled to significant back payments due to historical errors in the system.
Sandra Wrench, a former employee of the Department for Work and Pensions (DWP) with over 40 years of experience, is urging pensioners to be proactive and thoroughly check their payments.
The DWP and HM Revenue and Customs (HMRC) are currently investigating underpayments, and some pensioners could be owed an average of £11,905 in back payments. This issue affects millions of people, as around 13 million individuals are currently receiving their State Pension.
The annual uprating letters, which are set to arrive this month, will detail any changes to pension payments. Sandra Wrench emphasizes that while most payments are correct, it’s crucial for pensioners to scrutinize these letters to ensure they are receiving the correct amount.
This is particularly important for those who started receiving their State Pension before April 2016, as they may be on the older Basic State Pension scheme. For example, widows and divorcees are entitled to a full Basic State Pension, which is currently £169.50 per week and is expected to rise to £176.45 in April 2025.
Married women and those over 80 should receive at least 60% of the Basic State Pension rate, which is £101.55 per week (rising to £105.70 in April 2025). Additionally, those over 80 receive a small age addition of 25 pence per week, bringing their total to £101.80.
One of the key issues Sandra highlighted is the potential underpayment of women’s State Pensions, particularly for those who had children before April 1978. Before 1978, there was no Home Responsibilities Protection (HRP) in place, which meant women who stayed at home to care for children did not receive protection for their State Pension.
HRP was introduced in 1978 and later replaced by National Insurance (NI) credits in 2010. However, many women who had children between 1978 and 2000 may have missed out on HRP if their National Insurance number was not included on child benefit forms.
This has led to potential underpayments for thousands of women, and the government has acknowledged this issue, urging affected individuals to check their NI records for gaps and claim HRP if applicable.
Divorced women are also being encouraged to check their payments. If a woman gets divorced after claiming her State Pension, she may be entitled to an increased Basic State Pension based on her ex-husband’s NI contributions.
To do this, she must notify the DWP and provide her decree absolute as proof of divorce. Sandra Wrench stressed that the DWP will not automatically know about a divorce unless informed, so it’s important for divorced women to take this step to ensure they receive the correct amount.
Another area of concern is bereavement support. The Bereavement Support Payment replaced Widows Benefits in 2017, and it must be claimed within three months of a spouse or civil partner’s death to receive the full rate. Claims can be made up to 21 months later, but this will result in fewer payments.
Sandra also noted that cohabiting parents with dependent children have been eligible to apply for bereavement benefits since February 2023, following a change in legislation.
For those who believe their State Pension payments are incorrect, Sandra advises contacting the DWP on their change of circumstances telephone number, 0800 731 0469, to request a review.
She also recommends checking National Insurance records for any gaps, especially for periods when individuals took time off to care for children. Those without computer access can call the NI helpline at 0300 200 3500 for assistance.
The issue of State Pension underpayments is significant because millions of pensioners rely on these payments for their financial stability. Even small errors can have a big impact on their quality of life, especially as living costs continue to rise.
By carefully reviewing their uprating letters and taking action if they spot discrepancies, pensioners can ensure they receive the correct amount they are entitled to.
This is particularly important for vulnerable groups, such as older women and those who have experienced divorce or bereavement, who may be more likely to have been underpaid due to historical oversights in the system.
What do you think? Have you or someone you know experienced issues with State Pension payments? Share your thoughts or experiences!
