April 25, 2025 – In one of the largest pension correction efforts in UK history, the Department for Work and Pensions (DWP) has uncovered more than £800 million in state pension underpayments—impacting over 130,000 people, many of whom are older women or widows.
The DWP’s correction program, which began in January 2021, has already identified 130,948 underpayments as of March 31, 2025, with total repayments now reaching £804.7 million. These payouts come after long-standing errors in the way state pensions were calculated and issued.
Who Is Eligible for DWP State Pension Back Payments?
The errors largely affect specific groups, many of whom were unaware they were missing out on thousands of pounds. According to the DWP and pension experts, those most likely to be eligible include:
- Married women on low state pensions who weren’t automatically upgraded when their husband retired
Average payment: £5,553 - Widows whose pensions weren’t re-evaluated after the death of their spouse
Average payment: £11,725 - Over-80s whose entitlements were never increased due to system oversights
Average payment: £2,203
Additionally, a separate correction effort is addressing missing Home Responsibilities Protection (HRP) records, which affect people—especially women—who took time off work for caregiving. Between January and September 2024, another £42 million was uncovered in unpaid pensions due to missing HRP periods.
Why These Mistakes Happened
The issues stem from automated systems failing to adjust pension entitlements correctly over the years. In many cases, DWP did not act when people’s circumstances changed — such as when a spouse retired or passed away — leading to decades of underpayment.
According to Sir Steve Webb, partner at Lane Clark & Peacock (LCP), and former pensions minister:
“This has been one of the most serious failures of state pension administration in decades. Some women have died without ever receiving what they were rightly owed.”
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How to Check If You’ve Been Underpaid
While the DWP is actively reviewing records and contacting eligible individuals, not everyone will be reached automatically. Here’s how to check your eligibility:
Use the LCP Pension Calculator
Married women, in particular, can use LCP’s online calculator to check if they’re owed money.
Contact the Pension Service Directly
If you believe you’re affected, reach out to the Pension Service and request a review of your pension status.
Check Specific Scenarios
- If your husband turned 65 before March 17, 2008, and you’re married or divorced, you may need to take proactive steps.
- Widows and those aged over 80 may be contacted automatically, but should still verify their status to avoid being overlooked.
What Happens Next?
The DWP claims that it has already completed the majority of eligible case reviews, with only a small number pending due to documentation issues.
A spokesperson said:
“Our priority is ensuring pensioners receive the dignity and security they deserve in retirement. We remain committed to correcting errors and ensuring they do not happen again.”
With over £800 million now being redistributed and thousands of pensioners still potentially unaware, this correction marks a vital step toward restoring trust in the UK’s state pension system. If you or a loved one may be affected, now is the time to check.