UK to resolve pension underpayments by 2026-27
The Department for Work and Pensions (DWP) has announced a timeline for fixing state pension underpayment issues affecting over 100,000 people in the UK. Since 2021, the DWP has been addressing errors related to several groups, including married women born before April 1953 and older widows and widowers. Peter Schofield, the DWP permanent secretary, shared an update with the Work and Pensions Committee. He noted that the DWP finished most of the reviews by the end of December 2024. However, some outstanding cases are still awaiting extra information. From January 2021 to September 2024, the DWP identified 119,050 underpayments, amounting to £736 million. Schofield indicated that the remaining cases are expected to be resolved by March 2027. People have up to two years to provide any additional information needed for their cases. The DWP plans to release information about total cases reviewed and funds spent on March 26 during the Spring Statement. Underpayments mainly affect married women who previously could claim a pension based on their husband's contributions. This has led to mistakes in the National Insurance records, particularly for women who took time off work for childcare before 2000. Most payments will be made automatically. Individuals who suspect they were underpaid should contact the DWP.