DWP State Pension backpay of up to £11,500 being paid to three groups after errors totalling £300 million
Millions of pounds is owed to UK pensioners who have been paid the wrong amount with backpay of up to £11,500 being given out to three groups of people.
The Department for Work and Pensions (DWP) has been checking for State Pension errors since beginning a correction exercise nearly two and a half years ago. The Government department has so far identified underpayments worth £300 million.
A total of 46,716 cases were identified between January 11, 2021 and February 28, 2023 during the checking process, according to the most recent underpayments update. Another 31,817 underpayments had been identified between January 11, 2021, and October 31, 2022 with a total of £209.3 million being repaid.
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But who exactly will get the State Pension back pay and how much has been paid out so far? The DWP says the underpayments fall into three groups, BirminghamLive reports.
1. Married – those who should have qualified for a pension because of their partner’s NI record
Those with insufficient NI contributions to qualify for a basic State Pension may be entitled to a pension through their husband, wife or civil partner’s National Insurance contributions. This is called a Category BL State Pension and can give them a basic State Pension of up to £93.60 a week (at 2023/2024 rates).
People who are married or in a civil partnership who reach State Pension age before April 6, 2016 may be entitled to a Category BL uplift, without the need to make a separate claim. This may be the case if their husband, wife or civil partner became entitled to their State Pension on/after March 17, 2008, or had already reached State Pension age prior to the customer claiming their State Pension.
Around 53,000 people should have benefited from their spouse’s or civil partner’s National Insurance record and will receive back pay totalling £339 million.
2. Widowed – those who should have inherited State Pension from their late partner
Those who are widowed and are getting a basic State Pension of less than £156.20 a week (at 2023/2024 rates) can also derive basic State Pension from their late spouse or civil partner. This may give them a basic State Pension of up to £156.20 a week. They can also inherit between 50 per cent and 100 per cent of any additional State Pension and 50 per cent of any Graduated Retirement Benefit.
There are 44,000 widows and widowers who should have inherited more State Pension entitlement from their deceased partner. Some £568 million will be paid in total to people in this category.
3. Over 80 – those who should have had a State Pension when they reached 80
People who reach age 80 and are getting no basic State Pension or a basic State Pension amount of less than £93.60 a week can qualify for a Category D State Pension of £93.60 a week.
The DWP has identified 37,000 people who should have had an increase in their pension at their 80th birthday. As result, a total of £146 million will be paid to those who have missed out as a result of the DWP’s administrative errors.
How much money has been paid out so far
Married
Cases reviewed: 82,225
Underpayments identified: 22,276
Average arrears: £6,630
Total amount repaid: £147.7 million
Widowed
Cases reviewed: 54,150
Underpayments identified: 9,928
Average arrears: £11,521
Total amount repaid: £113.2 million
Over 80
Cases reviewed: 37,163
Underpayments identified: 14,512
Average arrears: £2,710
Total amount repaid: £39.3 million
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