The Department for Work and Pensions (DWP) is sending letters to thousands of Britons informing them they may be owed significant sums in state pension underpayments. The letters, sent at the end of July this year, target three main groups: married women, widows who reached state pension age before April 2016, and individuals aged 80 and over. According to a Freedom of Information request, 1,859 letters were sent out.
The majority, 1,671, were sent to next of kin flagging potential underpayments to deceased widows. Another 131 letters relate to cases where a married woman’s low pension was not automatically increased when her husband retired, and 57 cases involve underpaid pensions to those over 80. Former pensions minister Steve Webb warned that if recipients do not respond, the underpayments will remain unclaimed.
He noted that past underpayment payouts have ranged from a few thousand to over £100,000, meaning some Britons could be owed life-changing amounts.
state pension underpayment notifications
“We know that well over 100,000 people were underpaid state pensions, and DWP has spent more than three years trying to track them down,” Webb said.
“In thousands of cases, the underpaid person is sadly no longer with us, but their heirs should still benefit from any underpayment.”
The DWP confirmed they only calculate the underpayment entitlement once they receive a reply to the letter. If the DWP cannot trace a next of kin, the underpaid amount will be retained by the Government. Webb urged anyone who has received a letter from the DWP about a potential underpayment to respond as soon as possible.
“Although not all underpayments are large, in some cases people have received £100,000 or more, so the recipients of these letters could be sitting on a pensions goldmine,” he added. Those who believe they or a loved one might be affected by a state pension underpayment should contact the DWP promptly to investigate and resolve any discrepancies. The potential benefits could provide significant financial relief to many households.
