Underpayment of state pensions: New “blunders” show women owe thousands in arrears | Personal Finances | Finance


“The Department has dismissed concerns around this group far too lightly.”

The state pensions correction exercise came following the discovery of underpayments to divorcees of up to £ 60,000 in some cases. Divorced women are currently excluded from the exercise because the DWP believes that there is no “significant evidence” of errors among this group.

Mr. Webb is asking for a reconsideration of the decision to exclude divorced people. There are a number of reasons why a review is due, according to Mr. Webb’s analysis.

According to figures published in October 2021 by the DWP, 720,000 divorced women receive the old state pension (before 2016). The DWP notes that 40,000 of them do not benefit from the standard rate for a married woman, which is currently £ 82.45 per week. In addition, a divorced woman may in some cases receive a full basic pension (£ 137.60) using her ex-husband’s contributions, suggesting that “well over” 100,000 cases may be worth worth checking out.

Mr Webb pointed out that an error rate of just one percent would imply tens of millions of pounds underpaid.

Mr Webb also argued that the type of error that has caused problems for widows and others could also occur in the case of divorced women. In the case of widows, the DWP admits that there are tens of thousands of cases where the Department has been notified of the death of a spouse but no action has been taken to reassess the entitlement to the pension. State. However, when the women reported a divorce, Mr. Webb said that “the DWP seems to believe that steps have always been taken to reassess his state pension.”

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