Thousands of pensioners in the UK may be entitled to a compensation payout of up to £12,000 due to historic state pension underpayments.
The Department for Work and Pensions (DWP) has launched a Back Payment Plan to correct these errors, ensuring affected pensioners receive the money they were wrongly denied.
If you or a loved one fall into one of the affected groups, you could be owed thousands. In this guide, we’ll explain who qualifies, how to check eligibility, and the steps needed to claim your compensation.
Compensation
Why Is the DWP Paying £12,000 in Back Payments?
For years, administrative errors and outdated pension calculations have left thousands of pensioners receiving less than their entitled amount. These mistakes mostly impacted married women, widows, and over-80 pensioners.
The Legal Entitlements and Administrative Practices (LEAP) exercise, launched in 2021, aims to identify and fix these underpayments.
The average compensation amount varies, but in some cases, pensioners could receive a lump sum of up to £12,000.
Eligibility
Who Qualifies for the DWP’s Back Payment Plan?
Not all pensioners are affected, but three main groups have been identified as most likely to qualify:
1. Married Women and Civil Partners
Many married women and civil partners rely on their spouse’s National Insurance (NI) contributions to boost their state pension. However, errors in the system meant thousands did not receive their full entitlement.
- Before March 2008 – Women had to apply manually for pension increases, but many were not informed.
- After March 2008 – The system was supposed to automatically increase pensions, but in many cases, it failed.
Example: Mrs. Brown had been receiving £85 per week instead of the £120 she was entitled to. After a review, she was awarded back payments totaling £9,500.
2. Widowed Pensioners
When a spouse dies, the surviving partner’s pension should increase based on their late spouse’s NI record. However, many widows never received these adjustments, resulting in significant financial losses.
Signs you may be owed compensation:
- Your pension did not increase after your spouse passed away.
- You were never informed about adjustments to your payments.
Action: If you suspect an underpayment, contact the DWP with your spouse’s NI details and request a review.
3. Over-80 Pensioners
People over the age of 80 are entitled to a non-contributory pension (even if they have not paid full NI contributions). However, errors meant some pensioners received less than the minimum amount.
Example: Mr. Jones, 82, was receiving £64 per week instead of the required £85 per week. Over time, this mistake resulted in an underpayment of more than £10,000, which he is now entitled to claim.
Claims
How to Check If You’re Owed a Back Payment
If you suspect you are entitled to compensation, follow these three simple steps to check and claim:
1. Gather Your Documentation
- National Insurance records – Check how many years of NI contributions are on file.
- Marriage or civil partnership certificate – If you’re claiming based on your spouse’s contributions.
- Spouse’s death certificate (if applicable) – Required for widowed pensioners.
2. Contact the DWP
- Call the State Pension helpline: 0800 731 0469
- Visit the official DWP website: gov.uk
- Write to the Pension Service if you prefer postal communication.
3. Request a Pension Review
Explain why you believe you’ve been underpaid and provide any supporting documentation. The DWP will assess your case and inform you of any compensation owed.
How Long Will It Take?
The DWP aims to complete reviews by the end of 2024, but individual cases can take weeks or months. Be patient, and keep records of all communications.
Next Steps
What Should You Do Now?
If you or someone you know may be eligible for a back payment, act now to avoid missing out:
- Check your pension records – Look for any discrepancies in payments.
- Inform family and friends – Many pensioners are unaware of this scheme.
- Follow up regularly – If you’ve already contacted the DWP, don’t hesitate to request updates.
With thousands of pensioners already receiving compensation, you could be next. Don’t let an administrative error cost you money—check your eligibility and claim what you’re owed today.
