State pension underpayment 'scandal' sees thousands lose life-changing sums - report

Tens of thousands to miss out

clock • 2 min read

Tens of thousands of elderly female pensioners caught up in a state pension underpayment 'scandal' will not qualify to reclaim their full benefits due to a 2008 law change which caps their entitlement at one year, the BBC reports.

The report said the women pensioners will miss out on "life-changing" amounts of money despite being part of the underpaid cohort as they only qualify for a year's worth of backdated payments. Some 200,000 women are owed money after underpayments by the Department for Work and Pensions were uncovered. The collective underpayment stands at about £3bn. The report explained the errors relate to the old state pension system where married women with lower pension entitlements could claim 60% basic state pension based on their husband's National Insurance record. However, it has emerged ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why documentation is king in the world of SSAS

Why documentation is king in the world of SSAS

'SSAS documentation - it isn't just best practice or a fiduciary requirement'

Caitlin Southall
clock 04 July 2025 • 4 min read
Steve Webb: Sceptical advisers should not give up on pensions dashboard

Steve Webb: Sceptical advisers should not give up on pensions dashboard

‘A big mistake to underestimate the impact it will have’

Jenna Brown
clock 03 July 2025 • 3 min read
What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read