Financial expert explains changes to the state pension
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Earlier this year, it was found thousands of state pensioners have missed out on the full amount they are entitled to. It is estimated 134,000 people have not received the correct state pension sum.
According to the DWP, the majority of people who were affected in this way were women.
In addition, approximately £1billion of state pension has been underpaid.
Errors in the system may date as far back as 1985 – but the Government is attempting to right this wrong.
The issue relates to the basic state pension – the older scheme which could be claimed by individuals before April 2016.
Under this scheme, women were able to claim a state pension based on the National Insurance record of a husband, ex-husband or deceased husband.
In the vast majority of these cases, the system worked correctly and administered payments fairly.
However, a subsequent investigation has found some women were not benefiting in the right way from these rules.
It is estimated the 134,000 women are owed an average of £8,900 each.
State pension will undergo SIX key changes from next month [UPDATE]
State pension: What will you get in retirement? [INSIGHT]
‘It’s un-British!’ Pensioner, 75, furious as state pension sum frozen [VIDEO]
Recently, MPs slammed the DWP’s processes as a “shameful shambles”.
Dame Meg Hillier MP, Chair of the Public Accounts Committee, said: “For decades DWP has relied on a state pension payment system that is clunky and required staff to check many databases – and now some pensioners and the taxpayer are paying in spades.
“Departments that make errors through maladministration have a duty to put those it wronged back in the position they should have been.
“In reality DWP can never make up what people have really lost, over decades, and in many cases it’s not even trying.
“An unknown number of pensioners died without ever getting their due and there is no current plan to pay back their estates.
“This is a shameful shambles. The PAC expects DWP to set out the step changes it will make to ensure it is among the last.”
Since January 2022, the DWP has started to rectify the past errors and mistakes made.
A spokesperson previously told Express.co.uk: “Resolving the historical state pension underpayments that have been made by successive governments is a priority for the Department and we are committed to doing so as quickly as possible.
What is happening where you live? Find out by adding your postcode or visit InYourArea
“We have set up a dedicated team and devoted significant resources to processing outstanding cases, and have introduced new quality control processes and improved training to help ensure this does not happen again.
“Those affected will be contacted by us to ensure they receive all that they are owed.
“We are carefully considering the content of the Public Accounts Committee’s report and will respond formally in due course.”
Source: Read Full Article