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Jan 24

Pension Errors mean you could be owed a fortune

Reading Time: 2 mins

The Government is under scrutiny again –  this time from the Public Accounts Committee of MPs – about more pension errors dating back as far as 1985. According to a study, 134,000 pensioners, mostly women, miss out on over £1 billion in state pension income.

While the DWP is now undergoing a restitution exercise, tens of thousands of those affected tragically died before being repaid. The National Audit Office (NAO) has previously estimated those affected are owed £8,900 each on average in compensation.

Tom Selby, head of retirement policy at AJ Bell, comments:

“It is scandalous so many pensioners, mainly women and some of whom will have been struggling to make ends meet, suffered as a result of the DWP’s stone age administration processes.

“An estimated 134,000 are thought to have missed out on over £1 billion in state pension income as a result of the errors, meaning they should be due compensation of around £8,900 each on average.

pension error

“Sadly, an estimated 40,000 of those who should have been in line for a payout are thought to have died before the issue had been resolved. It is truly tragic that some of these people may have been unnecessarily living in penury during their final years.

“Clearly the priority for the DWP has to ensuring those affected receive the money they are owed as quickly as possible. Once that exercise is complete, a proper review should take place to ensure mistakes like this never happen again.”

Jasmine Says

MoneyMagpie’s Jasmine Birtles adds, “This story makes me angry every time I see it! Women in particular always seem to get the short straw when it comes to pensions payouts. I would like to see those who have been underpaid (including the inheritors of their estates where applicable) getting this back-pay automatically but I suspect that they will have to apply for it, as often happens with DWP payments. This is a story that will run and run, I’m sorry to say, and we at MoneyMagpie.com will be watching it carefully to make sure that our readers know if and when they can expect some compensation.”

WHAT DO YOU THINK?

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Joanne
Joanne
7 months ago

Hope everyone gets back what they are owed.

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