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DWP Confirms £804.7m in State Pension Underpayments

130,948 cases identified since 2021, with arrears expected to surpass £1 billion as the review continues.

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Overview

  • The Department for Work and Pensions (DWP) has uncovered 130,948 state pension underpayment cases, totaling £804.7 million as of March 31, 2025.
  • Errors primarily impacted women, including married women, widows, and over-80s, due to failures in automatic pension adjustments.
  • A separate review of Home Responsibilities Protection (HRP) identified 5,344 underpayments, amounting to £42 million in arrears by September 2024.
  • The government anticipates total repayments to exceed £1 billion, with most cases resolved but some still requiring customer documentation.
  • Experts have called the situation one of the largest benefit scandals in recent history, urging swift resolution for affected pensioners.