DWP reveals 6 additional State Pension payment errors

The Department for Work and Pensions (DWP) has shared six previously unrevealed errors in State Pension payments it has had to act to correct since 2007. The DWP shared details of the corrections in a Freedom of Information response to pensions consultancy LCP. The errors range from those affecting a handful of people to multi-million-pound blunders. One of the corrections was due to an error affecting people who reached pension age under the old system and whose partner reached (or would have reached) pension age under the new system and has now died; an error was made in the way these payments were uprated. Another of the most significant corrects is the ‘married woman’s stamp’. Under the new State Pension women who paid the ‘married woman’s stamp’ may qualify for a concessionary rate of payment if they are married, divorced or widowed and would otherwise get a low pension in their own right. In 2019, three years after the new system came into force, it was noticed that some married women were not being paid this transitional amount in line with their legal entitlement. However, cases are still emerging where women are not being paid the correct amount under these special rules The FOI also reveals some much smaller errors including entering incorrect figures for maximum pensions, some small underpayments of State Second Pension and errors where people had unusually large amounts of deferred state pension. Steve Webb, partner at LCP said: “Whilst anyone can make a mistake, what is worrying about this catalogue of errors is how long it can take for anyone to spot that anything is wrong. In one case it was three years after the new state pension was implemented before anyone spotted a systematic problem with the payments to certain married women. “It is also surprising that information about these errors and correction exercises has not previously been made public. DWP need to improve on two fronts – better error checking to make sure people are not paid the wrong pension in the first place, and greater transparency so that the public is told when things have gone wrong”. Two major state pension errors have previously been made known to the public and were subject to large scale rectification programmes. A large-scale correction exercise ran from 2009-2011 where parents were due ‘home responsibilities protection’ for time at home with children but this was never mapped onto their state pension record. The correction benefited around 36,000 people and resulted in £83m in arrears being paid. A correction exercise in currently running between 2021-23 to identify 134,000 pensioners who have been underpaid state pensions and are owed around £1bn in back payments.

DWP reveals 6 additional State Pension payment errors

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