Thousands of UK pensioners have been underpaid due to historical errors in the state pension system. The Department for Work and Pensions (DWP) is actively correcting these mistakes, with over £804 million already repaid.
This guide provides the latest updates on eligibility, the correction process, and steps to claim any owed payments.
What Are State Pension Back Payments?
State pension back payments are lump sums paid to individuals who were underpaid due to administrative errors. These underpayments often affect:The Sun
- Married women who didn’t receive the correct pension increases.
- Widows and widowers who missed out on inherited payments.
- Individuals over 80 receiving less than their entitled amount.
- Carers who didn’t receive proper credits.Moneyweek+1The Guardian+1The Sun+1Moneyweek+1
The average arrears vary:
- Married women: £5,553
- Widows: £11,725
- Over 80s: £2,203Moneyweek+1GOV.UK+1MaPS+3GOV.UK+3Moneyweek+3
These figures highlight the significant amounts some individuals are owed. Moneyweek+18The Independent+18GOV.UK+18
Who Is Affected by State Pension Underpayments?
The DWP’s correction exercise has identified several groups affected by underpayments:The Independent+4Homecare+4The Sun+4
- Married women who did not receive the correct pension amount based on their husband’s contributions.
- Widows and widowers who missed out on pension increases after their spouse’s death.
- Individuals over 80 who are entitled to a Category D pension but received less.
- Carers who did not receive proper credits for their caregiving responsibilities.
- Individuals with Home Responsibilities Protection (HRP) errors, particularly those who claimed Child Benefit before May 2000 without including their National Insurance number. The Sun+3Moneyweek+3Moneyweek+3Moneyweek+2The Sun+2GOV.UK+2Headline Money+20The Guardian+20The Sun+20GOV.UK+2The Sun+2Moneyweek+2
Between January 2021 and March 2025, 130,948 underpayments were identified, totaling £804.7 million. Homecare+6The Independent+6GOV.UK+6
Understanding the LEAP Exercise
The Legal Entitlements and Administrative Practices (LEAP) exercise is the DWP’s initiative to identify and correct state pension underpayments. Key aspects include:
- Reviewing cases where individuals may have been underpaid.
- Identifying errors related to HRP and National Insurance records.
- Issuing back payments to affected individuals.Yahoo News UK+9The Sun+9Moneyweek+9
As of March 2025, the LEAP exercise has resulted in significant repayments, with ongoing efforts to reach all affected parties. LCP+3Pensions Age+3Homecare+3
How to Check if You’re Owed Money
If you believe you may have been underpaid, consider the following steps:
- Review your state pension statements for any discrepancies.
- Check your National Insurance record for any missing credits, especially if you were a carer or claimed Child Benefit before May 2000.
- Contact the Pension Service for clarification and to initiate a review.The Sun+1Moneyweek+1
The DWP is contacting individuals identified through the LEAP exercise, but proactive checks can ensure you don’t miss out. The Sun
How to Claim State Pension Back Payments
To claim any owed payments:
- Online: Visit the GOV.UK website and follow the instructions to claim your state pension.
- Phone: Call the Pension Service at 0800 731 7898.
- Post: Request a claim form and submit it via mail.GOV.UK+4https://www.turn2us.org.uk/+4GOV.UK+4Age UK+1https://www.turn2us.org.uk/+1
Ensure you have relevant documents, such as your National Insurance number and any correspondence from the DWP.
Tax Implications and Benefits Impact
Receiving a lump sum back payment may have tax implications:HMRC Community Forum
- Income Tax: The payment may be considered income for the year it’s received, potentially affecting your tax bracket.
- Benefits: Your eligibility for means-tested benefits like Pension Credit could be impacted.
It’s advisable to consult with a financial advisor or HMRC to understand the specific implications for your situation.
Latest Updates as of May 2025
The DWP continues to address underpayments, with over £804 million repaid to date. Efforts are ongoing to identify and compensate all affected individuals. The Independent+5GOV.UK+5Homecare+5
Recent discussions in Parliament have highlighted the importance of correcting these errors and ensuring transparency in the process.
Frequently Asked Questions (FAQs)
Q: How do I know if I’m affected by the underpayment issue?
A: If you fall into one of the affected categories—such as married women, widows, over 80s, or carers—you may have been underpaid. Contact the Pension Service to check your status.
Q: Will I be contacted by the DWP if I’m owed money?
A: The DWP is reaching out to individuals identified through the LEAP exercise. However, it’s recommended to proactively check your records and contact the Pension Service if you have concerns.The Sun
Q: Are there deadlines for claiming back payments?
A: While the DWP is actively correcting errors, it’s best to act promptly. There may be time limits on backdating claims, so contact the Pension Service as soon as possible.
Conclusion
The DWP’s efforts to rectify state pension underpayments are ongoing, with significant progress made. If you believe you may be affected, take proactive steps to review your records and contact the Pension Service. Ensuring you receive the correct pension amount is crucial for your financial well-being in retirement.