Older women risk dying before seeing state pension corrected
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After more than three years of a state pension correction exercise, less than half of an estimated £1.46bn in underpayments have been identified. The number of reviewed cases per month has dropped dramatically, raising doubts over whether some of those affected – nine in 10 of whom are women – will live to see their correct state pension being paid.
A further 14,693 pensioners owed £74.6m of state pension underpayments have been identified since the end of October, bringing the total underpayments found since January 2021 to £571.6m, an update from the Department for Work and Pensions, published on Thursday, shows.
However, the DWP reviewed just 111,724 cases since the previous update four months earlier. In the eight months between February and October 2023, the number was nearly four times higher at 420,426. This means the average number of reviews per month dropped from over 52,500 cases to fewer than 28,000.
The DWP has previously estimated the exercise will last until the end of this year, but it is questionable whether this will be feasible given the current pace, despite the department hiring additional staff.
A DWP spokesperson said: “The action we are taking now is correcting historical underpayments made by successive governments. Our priority is ensuring pensioners receive the financial support to which they are entitled and we have set up a dedicated team and devoted significant resources towards completing the correction exercise.”
A DWP spokesperson said: “The action we are taking now is correcting historical underpayments made by successive governments. Our priority is ensuring pensioners receive the financial support to which they are entitled and we have set up a dedicated team and devoted significant resources towards completing the correction exercise.”
The update on the state pension correction was published on the same day as figures showing that there has been an increase in the percentage of pensioners in material deprivation compared with 2020, with 16% now living in relative poverty after housing costs, while the largest increases in low-income measures was for children.
With an estimated 40,000 people having already died without seeing their pension rectified, it is critical that those affected receive their money as quickly as possible, said Tom Selby, director of public policy at investment platform AJ Bell.
He added: “Once compensation has been paid, the government needs to undertake a comprehensive review of its processes to ensure these mistakes are never repeated. Trust in pensions is fragile at the best of times and failures such as this will not help. Sadly, it will likely take years, if not decades, to rebuild the confidence lost as a result of this scandal.”
With an estimated 40,000 people having already died without seeing their pension rectified, it is critical that those affected receive their money as quickly as possible, said Tom Selby, director of public policy at investment platform AJ Bell.
He added: “Once compensation has been paid, the government needs to undertake a comprehensive review of its processes to ensure these mistakes are never repeated. Trust in pensions is fragile at the best of times and failures such as this will not help. Sadly, it will likely take years, if not decades, to rebuild the confidence lost as a result of this scandal.”
This article has been updated to include comment from DWP
