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A significant Department for Work and Pensions (DWP) error has resulted in around 130,000 people—mostly women—being underpaid on their state pensions for years. This issue, described as one of the biggest benefit scandals in recent history, has led to an average underpayment of over £6,000 per person.
The mistake primarily affected:
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Married women whose pensions were not automatically increased when their husbands retired
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Widows and widowers whose payments weren’t adjusted after their spouse’s death
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Over-80s who didn’t receive an automatic pension increase at that age
The DWP has confirmed that 130,948 people were impacted. While the majority of cases have been reviewed, full resolution isn't expected until March 2027.
Rachel Vahey of AJ Bell emphasized the urgency, saying, “It’s vital all affected individuals receive what they’re owed without delay.”
Former pensions minister Steve Webb added, “Many of those affected were women, some underpaid for decades or even passed away without receiving what was rightfully theirs. These remaining cases must be prioritized to prevent a repeat of such failings.”
In response, a DWP spokesperson stated that most reviews have been completed, with only a small number of cases pending due to missing customer documentation.
