State pensioners being sent letters from DWP which will hand them free £7,859

State pensioners have been told they could be about to get a payment worth a staggering £8,000 in a major Cost of Living boost. The Department for Work and Pensions is moving to correct historic underpayments, and pensioners could be handed THOUSANDS.

The DWP has found a state pension error and has now sent out 370,000 letters which mean older people could be owed £7,859. 370,000 women have been contacted regarding potential underpayments on their state pension, stemming from Home Responsibilities Protection (HRP) errors.

Between January 8 and September 30, 2024, HMRC identified 5,344 cases of underpayment among those who responded to the letters, totalling approximately £42 million in arrears. The DWP has since issued an average of £7,859 in back payments to the affected individuals.

READ MORE:Channel 4 will disappear from thousands of TV boxes from November 28

READ MORE:Sky customers urged to 'unlock' 70 hidden TV channels at no extra cost

READ MORE UK faces -7C snow with 'all' of country at risk and 'nowhere spared'

This issue affected individuals who took time off work to care for children or someone with a disability between 1978 and 2010. The problem arose because child benefit claim forms submitted before 2000 often didn't include a National Insurance (NI) number.

This gaffe meant the relevant HRP information wasn't transferred from the child benefit system to the NI system. As a result, thousands missed out on state pension benefits worth an average of over £5,000. Emma Reynolds, minister for Pensions, said: "The government's priority is to ensure pensioners have security and dignity in retirement.

"I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for Home Responsibilities Protection – taking just a few minutes out of your day now could mean a boost to your retirement."

Not all cases processed by DWP have an underpayment. Cases may already have the qualifying years for a full state pension, may already receive a higher state pension inherited from their spouse, may still not be entitled to state pension as all conditions not met.