Thousands of pensioners in the UK have been underpaid due to administrative errors in state pension calculations. The Department for Work and Pensions (DWP) has launched a back payment plan to correct these mistakes, ensuring that eligible pensioners receive the money they are owed. Some individuals could receive up to £12,000 in compensation.
If you or a family member might be affected, knowing the eligibility criteria and application process is crucial. This guide explains who qualifies for the compensation, how to check if you are owed money, and what steps to take to claim it.
Who is Affected
The DWP’s Legal Entitlements and Administrative Practices (LEAP) review, which started in 2021, focuses on three key groups of pensioners who may have been underpaid:
- Married women and civil partners whose pensions did not increase in line with their spouse’s National Insurance record
- Widowed pensioners whose state pension should have been adjusted after their spouse passed away
- Over-80 pensioners who received less than the minimum non-contributory pension rate
If you fall into one of these categories, you may be entitled to a back payment.
Compensation
Eligible pensioners could receive significant back payments depending on the length of time they were underpaid.
| Affected Group | Potential Back Payment |
|---|---|
| Married women and civil partners | Up to £12,000 |
| Widowed pensioners | Varies based on spouse’s contributions |
| Over-80 pensioners | Varies, typically several thousand pounds |
The deadline for reviewing claims is the end of 2025, so it is important to act quickly if you believe you may be affected.
Eligibility
Before March 2008, many women had to apply manually for an increase in their state pension based on their spouse’s National Insurance contributions. In many cases, they were not informed of this requirement, resulting in underpayments.
After March 2008, the system was supposed to automatically increase pensions for those eligible. However, errors in processing meant that some pensioners did not receive the correct payments.
Example: Mrs. Smith was receiving £85 per week instead of the expected £120 based on her husband’s National Insurance record. She is now eligible for a significant back payment to correct the underpayments.
Widowed Pensioners
When a spouse passes away, the surviving partner’s pension should be adjusted to reflect the full National Insurance record of the deceased spouse. Many widows and widowers were not given this increase due to processing errors.
Signs you may be affected:
- Your pension did not increase after your spouse’s death
- You suspect that the recalculation of your payments was not done correctly
If you believe this applies to you, contacting the DWP with your spouse’s National Insurance details is essential.
Over-80 Pensioners
For pensioners over 80, the government provides a non-contributory pension rate, even if they have not made sufficient National Insurance contributions. Some pensioners received less than the required minimum due to administrative mistakes.
Example: Mr. Jones, 82, was receiving £64 per week instead of the non-contributory minimum of £85. After review, he was entitled to a back payment covering the difference for the number of weeks he had been underpaid.
The DWP has been actively contacting those in this group, but if you believe you were affected, reaching out to them directly is a good idea.
How to Check
If you think you may be entitled to a back payment, follow these steps:
Gather Your Documents
Before contacting the DWP, have the following documents ready:
- National Insurance records
- Marriage or civil partnership certificate (for married pensioners)
- Spouse’s death certificate (for widowed pensioners)
Contact the DWP
Call the State Pension helpline at 0800 731 0469 or visit the official gov.uk website to check for updates and online support.
Request a Pension Review
When speaking to a representative, specify that you believe you were underpaid and provide your supporting documents. Clearly explain why you think you qualify for a back payment.
Wait for the Outcome
Processing times vary, and reviews can take weeks or even months. However, the DWP has committed to resolving all cases by the end of 2025. Keep a record of all correspondence with the DWP for reference.
The DWP’s back payment plan aims to correct long-standing errors and provide financial relief to those affected. If you or someone you know falls into one of the eligible groups, taking action now could ensure you receive the money you are owed.
FAQs
Who is eligible for the DWP back payment?
Married women, widowed pensioners, and over-80 pensioners affected by state pension miscalculations.
How much compensation can I receive?
The compensation amount varies but can be up to £12,000 for some pensioners.
How can I check if I am owed money?
Contact the State Pension helpline at 0800 731 0469 or visit gov.uk to request a review.
What documents do I need for a claim?
National Insurance records, marriage or civil partnership certificate, and spouse’s death certificate if applicable.
When is the deadline to apply for a back payment?
The DWP aims to resolve all cases by the end of 2025, so it is important to act soon.
