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UK State Pension Underpayment Corrections Surpass £800 Million

DWP confirms over 130,000 cases identified since 2021, with repayments expected to exceed £1 billion as reviews continue.

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Overview

  • The Department for Work and Pensions (DWP) has identified 130,948 state pension underpayments totaling £804.7 million as of March 31, 2025.
  • Errors primarily affected married women, widows, and over-80s, who were underpaid due to miscalculations in pension entitlements.
  • A separate Home Responsibilities Protection (HRP) review uncovered £42 million in arrears across 5,344 cases, with further repayments anticipated.
  • The vast majority of cases have been resolved, but a small number remain pending due to missing documentation, according to the DWP.
  • Experts, including former pensions minister Sir Steve Webb, project total repayments could exceed £1 billion, underscoring calls for systemic reforms to prevent future errors.