A major error in the UK’s pension system has come to light, with the Department for Work and Pensions (DWP) confirming that over 130,000 pensioners have been underpaid, totaling £804.7 million. The underpayments, affecting some of the most vulnerable citizens—including married women, widowed individuals, and those over 80—stem from long-standing administrative oversights and outdated processes.
With some individuals owed as much as £12,000, pensioners and their families are being urged to review their entitlements and contact the DWP if they suspect an error.
The Scope of the Problem
Between January 11, 2021, and June 31, 2025, the DWP reviewed pension records and identified 130,948 cases of underpayment. The problem spans decades and includes pensioners who were entitled to increases but never received them due to failures in automatic recalculations and missed changes after life events such as the death of a spouse.
In some unfortunate cases, affected individuals have passed away before receiving the money owed, leaving families unable to claim it through the estate in certain instances.
Who Has Been Affected?
The DWP has grouped the majority of affected pensioners into three key categories:
1. Married Women (Category BL)
- These women were entitled to 60% of their husband’s basic state pension after he reached retirement age.
- However, many were left on a lower pension rate because their payments weren’t automatically increased.
- Average repayment: £5,553
2. Widowed Pensioners
- After the death of a spouse, widows should have had their pensions reassessed, potentially gaining from inheriting a portion of their late partner’s pension.
- Many did not receive these increases.
- Average repayment: £11,725
3. Individuals Over 80 (Category D)
- Under UK pension rules, those over 80 are entitled to a minimum weekly pension regardless of National Insurance contributions.
- Some never received this automatic increase.
- Average repayment: £2,203
Additionally, a separate investigation into Home Responsibilities Protection (HRP)—intended to safeguard pensions for carers and parents—identified 5,344 further cases, totaling £42 million in arrears.
Average Arrears by Group
| Group | Average Owed |
|---|---|
| Widowed Pensioners | £11,725 |
| Married Women (Cat BL) | £5,553 |
| Over 80s (Cat D) | £2,203 |
What Caused the Underpayments?
- Manual processing errors
- Outdated systems that failed to auto-adjust pensions after key life events
- Lack of clear communication between pension records and eligibility data
- Failure to reassess entitlements after changes in marital or residency status
The problem has been called one of the largest benefit scandals in recent memory. Many underpayments went unnoticed for years, particularly affecting women who were often unaware they were entitled to more.
What Is the DWP Doing?
A spokesperson for the DWP acknowledged the failure and said the department remains committed to:
- Identifying and correcting all remaining underpaid cases
- Ensuring pensioners receive back payments
- Improving system automation to prevent similar errors in the future
While most affected pensioners have already received repayments, some cases are still under investigation, particularly those with missing records or complex personal histories.
What You Should Do
If you think you or a relative might have been underpaid:
- Check your National Insurance and pension records
- Contact the DWP Pension Service to request a formal review
- Prepare supporting documents like:
- Marriage or death certificates
- Your spouse’s pension details
- Letters from DWP or HMRC
- Seek help from organisations such as Age UK, Citizens Advice, or a pension specialist
There is no formal deadline to raise concerns, but acting quickly increases your chance of recovering owed funds.
Why This Matters
Beyond the financial loss, this issue reflects a systemic failure to protect some of the most vulnerable pensioners. Many women, especially those who relied on spousal entitlements, were left with lower incomes for decades.
With the cost of living rising and many retirees on fixed incomes, these repayments offer not just financial support but a recognition of entitlements long overdue.
FAQs
What is the DWP pension underpayment issue?
It involves over 130,000 pensioners being underpaid due to administrative failures, mostly affecting married women, widows, and people over 80.
How much could I be owed?
Depending on your category, you could be owed between £2,000 and £12,000, with average repayments ranging from £2,203 to £11,725.
Who should I contact if I suspect underpayment?
Contact the DWP Pension Service directly or consult with Age UK or Citizens Advice for guidance.
What if the affected person has died?
In some cases, the estate may be eligible to claim back payments. It depends on documentation and timing. Contact the DWP for advice.
