Women have been urged to take action as they could be due money back as a result of a Department for Work and Pensions (DWP) error, as it relates to the state pension. The issue involves the older pension scheme, known as the basic state pension, currently received by millions.
Under the scheme, women were able to claim a state pension based on the National Insurance record of their husband, ex-husband, or deceased husband.
However, although most payments were issued without error, some issues have been subsequently identified which have resulted in thousands of women being underpaid.
Experts have renewed their calls for older women to look into the matter, as it could potentially provide them with a valuable financial boost.
Claer Barrett, consumer editor of the Financial Times, appeared on ITV’s Lorraine this morning, to offer her thoughts on how people may be affected.
READ MORE: Rishi Sunak urged to act as ‘500,000’ working age Britons ‘penalised’
“It is these people who may have inherited a bit of the state pension from their husband, and this is where the errors have been made.”
The state pension underpayment issue occurred due to numerous factors but they’ve mostly been attributed to computer errors.
There were also some issues in the complexity of the pension system and the way it was designed after World War Two – which have now been rectified.
But how much could people actually be due when it comes to underpayments? Understandably, the answer will vary on a case-by-case basis, but a pleasing result could be discovered for many.
READ MORE: Savings account ‘to pay double inflation’ turning £10k into £12,462
Ms Barrett said: “There are some people who are finding out they are owed £6,000, £7,000, even £8,000 from the age at which they lost out.
“We’re in a cost of living crisis, and if you’re a pensioner on a fixed income that could change your life.
“Getting that money topped up going forward could make a difference.”
In November 2022, DWP data showed over £200million of state pension underpayments have been identified so far, and the search continues.
Ms Barrett acknowledged the DWP is currently working through the hundreds of thousands of people who could be impacted.
The Department’s correction exercise is ongoing and aims to reach as many people as soon as possible.
However, the expert said some may wish to be more proactive in finding out whether they are owed money, especially in the current climate.
She added: “I think if you’re over 70, and not getting much state pension, invest 10 minutes of your time reading through the guide on the Money Saving Expert website.
“Make yourself aware of those issues, as it could really benefit you.”
A DWP spokesperson previously told Express.co.uk: “The action we are taking now will correct historical underpayments made by successive Governments. We are fully committed to addressing these errors, not identified under previous governments, as quickly as possible.
“We have set up a dedicated team and devoted significant resources towards completing this – alongside publishing GOV.UK guidance for next of kin – with further resources being allocated throughout 2022 and 2023 towards the underpayments exercise.”
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
