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DWP Opens Pension Underpayment Scheme Indefinitely After Low Uptake

Claims for missing pension credits will remain open indefinitely as the government aims to settle all cases by March 2027.

Overview

  • After fewer than 13,000 of 370,000 notified carers applied for back payments, the DWP converted its Home Responsibilities Protection correction into an ongoing programme.
  • HMRC’s letter campaign since late 2023 has generated £104 million in arrears but prompted a provision cut from £1.2 billion to £29.8 million.
  • The government has pledged to resolve all HRP cases by March 2027 with no deadlines for retrospective state pension claims.
  • Reviews of Personal Independence Payment awards under the 2019 MM judgment have resolved over 527,000 of 633,000 cases and introduced High Court-mandated reforms.
  • The DWP has paid £13 million in compensation for errors in Scottish PIP transfers to devolved Adult Disability Payment claimants.