DWP confirms State Pension back payments of around £5,000 starting for women after errors

The Department for Work and Pensions (DWP) has revealed that women affected by historical miscalculations are starting to receive average State Pension back payments of around £5,000. These repayments have been triggered by missing Home Responsibilities Protection (HRP) and Universal Credit National Insurance (NI) issues.

Even pensioners who have since passed away have been identified with average overdue payments of about £3,000. The HRP scheme, intended to safeguard the State Pension entitlements of parents and carers, was supplanted by NI credits effective from April 6, 2010.

As many as possible individuals who might have rightfully claimed HRP between 1978 and 2010 without having it on their NI record are now being sought out by HM Revenue and Customs (HMRC) through their NI records, reports Wales Online.

• READ MORE: DWP advisor quits as 34,500 claimants told to pay back benefits or face fines

• READ MORE: Full list of DWP reforms planned for people on PIP, Universal Credit

Since May 2000, a NI number had to be included in claims so those applying after this date would not be impacted. Paul Maynard MP, DWP Pensions Minister, reasoned that the "central estimate was around 187,000 cases who may have an underpayment of State Pension and for whom we expect to correct, with a total underpayment estimate of £1,043 million".

Mr Maynard's statement came in response to Labour MP Dame Angela Eagle querying the typical value of the detected State Pension underpayments, reports the Daily Record,

In a recent written statement, the Pensions Minister disclosed: "The exercise to correct National Insurance records for those individuals impacted by errors in their HRP record is underway. The HRP corrections exercise started with HMRC dispatching letters in late 2023. Cases subsequently notified from HMRC started being processed in DWP in early 2024."

He further noted: "In the Department's Annual Report and Accounts 2022-2023, the central estimate value of an underpayment was £5,000 for alive cases above state pension age and £3,000 for deceased cases. We intend to publish an update on the exercise in this year's Annual Report and Accounts."

Additionally, Mr Maynard confirmed that the DWP has rectified the Universal Credit data issue for the cases impacted up until the tax year 2022/2023.

He further elaborated: "This data has been shared with HMRC. As HMRC updates NI records, these updates are sent to DWP. Any State Pension entitlement will be reassessed, and any underpayment addressed accordingly."

The DWP previously signalled that the correction procedure should be finalised prior to the close of 2025. It's worth noting for those who are unsure if they're impacted or seeking to make a claim, that nearly 12.7 million folks across the UK are presently benefiting from the State Pension. This includes just over one million residents located in Scotland.

Of this total figure, 9.3 million are in receipt of the Basic State Pension, while 3.4 million individuals are enrolled in the New State Pension. The Basic State Pension currently amounts to a maximum of £169.50 per week, while the New State Pension can reach up to £221.20.

For a quick check on whether you've been underpaid your State Pension, it's advised to give the pension service a ring. The best number to call is 0800 731 0469, and full contact details can be found on the Gov.uk website here.