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  • Underpaid pensioners get £209m out of £1.46bn owed due to government mistake

Underpaid pensioners get £209m out of £1.46bn owed due to government mistake

The government has returned £209.3m in underpaid state pensions as the latest estimates shows that many as 237,000 pensioners had been underpaid around £1.46bn.

by | 29 Nov, 2022

The Department for Work and Pensions (DWP) identified 31,817 state pension underpayments between January 2021 and last October, making it possible to hand back £209.3m.

However, in its progress on reviewing cases of state pension underpayment, it said that as many as 237,000 pensioners had been underpaid around £1.46bn.

DWP has admitted that there are systematic errors in state pension calculations for three main groups.

Married women, who should have received an upgrade to a 60% basic state pension when their husband retired. The DWP said the average payment arrears in this group amounted to £6,929. It repaid £91.1m.

The second group are widowers who should have inherited an enhanced state pension when their spouse died. The government found 7,876 underpayments under this category and repaid £84m.

The last group are over 80s already in receipt of a state pension when they turned 80, who should have been automatically upgraded to a 60% basic state pension. In this case, the DWP found 10,784 cases and handed back £34.2m.

Read more at Yahoo Finance

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