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

The £22.40 question: Are clients in the dark on the full state pension?

The £22.40 question: Are clients in the dark on the full state pension?

'The political architecture is elegant, from the Treasury's perspective'

James Floyd
clock 01 May 2026 • 3 min read
Alltrust acquires Phoenix Wealth Family Suntrust schemes

Alltrust acquires Phoenix Wealth Family Suntrust schemes

Completion expected later this year

Jenna Brown
clock 29 April 2026 • 1 min read
Government proposes further concession on Pension Schemes Bill mandation

Government proposes further concession on Pension Schemes Bill mandation

Amendment covers pension schemes seeking an exemption

Holly Roach
clock 27 April 2026 • 2 min read