Govt to pay out £1bn after chronic state pension underpayment

134,000 people – mostly women – affected

Jenna Brown
clock • 4 min read

The government is to distribute up to £1bn to 134,000 people after underpaying their state pension over the course of several decades with 90% of those affected being women.

Out of 134,000 cases, about 94,000 are still alive and some 40,000 have died and payments could be made to estates.  The data was released as part of a National Audit Office (NAO) report on the scandal. The report found the biggest error was an underpayment of £128,000, it added errors go back as far as 1985. About one in eight arrears payments so far is for £40,000 or more. The Department for Work and Pensions (DWP) still has no agreed plan for dealing with deceased cases. Even in the ‘correction' exercise, DWP staff were initially getting about an eighth of cases incorrect. Th...

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

Time is of the essence for pension transfers, advisers say

Time is of the essence for pension transfers, advisers say

More than half highlighted that they are taking one to six months

Isabel Baxter
clock 28 November 2024 • 3 min read
A decade on: Risks and challenges of freedom and choice

A decade on: Risks and challenges of freedom and choice

'Let me be clear: No one will have to buy an annuity'

Adrian Boulding
clock 25 November 2024 • 6 min read
How retirement planning has transformed over the past 50 years

How retirement planning has transformed over the past 50 years

PPI report looks at the move from predictable pensions to personal responsibility

Jonathan Stapleton
clock 21 November 2024 • 3 min read