Households urged to do ‘simple test’ as tens of thousands are underpaid up to £12k in state pension – are you owed cash?
PENSIONERS are being urged to take a simple test to check whether they are being underpaid state pension following widespread errors by the DWP.
Tens of thousands of pensioners have been left up to £12,000 out of pocket after the Department for Work and Pensions (DWP) failed to increase their payments correctly.
Over the past two years the department has been correcting the widespread errors.
Those affected are mostly married, divorced or widowed women who first claimed the state pension before April 2016.
The old state pension system allowed a woman’s pension entitlement to be based on her husband’s National Insurance (NI) contributions, rather than her own.
These women should have received increases to the basic state pension when their husbands retired, but didn’t due to an IT error.
The DWP has been contacting those affected over the past few years.
Some pensioners, both men and women, over 80 have also been identified as being underpaid.
The latest figures to October 31 last year revealed 82,323 retirees were found to have been underpaid as a result of DWP errors.
However, the correction exercise for these two groups of pensioners was due to be completed by the New Year, meaning anyone who falls into these categories won’t be contacted.
Experts are now urging claimants to take action to ensure they are not still being underpaid.
There is a quick test retirees can do if they are concerned they may not be receiving the full amount they’re entitled to.
Anyone over 80 and women with a husband over state pension age receiving the full basic state pension should be receiving £93.60 per week.
If you fall into one of these categories and aren’t getting that much, you could be being underpaid.
Over-80s are automatically entitled to this amount regardless of their NI contributions, as long as they satisfy a “basic residency” test in the UK.
Women with a husband over state pension age who claims the full basic state pension of £156.20 per week are also due this amount.
It may be that you need to make a claim to get the boost.
Former pensions minister Steve Webb, now partner at consultancy LCP, said: “Now the DWP has finished checking for errors among married women and the over 80s, anyone still on a low pension should take action.
“The vast majority of pensioners should be getting at last £83.60 per week.
“Anyone on less needs to contact the Pension Service to see if an error has been made or if they need to put in a claim.”
You can contact the Pension Service on 0800 731 0469.
A DWP spokesperson told The Sun: “The action we are taking now is correcting historical underpayments made by successive governments.
“Our priority is ensuring pensioners receive the financial support to which they are entitled and we have set up a dedicated team and devoted significant resources towards completing the correction exercise.”