Thousands DENIED benefits after payment error uncovered – are you owed up to £2,210?

THOUSANDS of individuals could be owed up to £2,210 after being wrongly denied benefits.

Windowed people who tried to claim new-style jobseeker’s allowance (JSA) during the pandemic could have missed out due to a Department for Work and Pensions (DWP) blunder.

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The DWP has admitted that during that time, it may have treated income from a pension inherited from someone who has died the same as income from other pensions.

This is a significant issue because only the income from your own pensions can affect how much JSA you can get.

Income from pensions inherited from someone who has died should not affect your eligibility for JSA.

However, the DWP has confirmed that thousands were wrongly denied or underpaid JSA between March 19, 2020 and November 19, 2022.

You can get new style JSA for up to six months if you have been working and have paid enough national insurance contributions within the last couple of years.

Payments are worth £67.20 per week if you are under 25 and £84.80 per week if you are 25 or over.

But you may get less if you have part-time earnings or receive an income from a personal pension.

If you fell victim to the DWP’s latest blunder and are now found to have been eligible for the maximum payment for the full six months, you could be due a payment worth up to £2,210 in total.

Steve Webb, partner at consultants LCP, said: “During the Pandemic, thousands of people will have lost a husband or wife and, as a result, may have started to receive a widow or widower’s company pension.

“If they then signed on as unemployed, any income from this inherited company pension should have been ignored when they were assessed for jobseeker’s allowance.

“Unfortunately, DWP officials were getting this wrong for more than two years. 

“Not only did people have to cope with their bereavement, but they may also have been deprived of money which was rightfully theirs. “

The DWP has said it is actively contacting affected claimants, but you don’t need to wait for a letter – you can still claim cash now.

We’ve explained everything you need to know about the blunder below.

Who is affected by the issue?

You could be owed up to £2,000 if you made a claim for new style JSA between March 19, 2020 and November 19, 2022.

To be affected you’ll need to have told the DWP that received income from a pension.

But you’ll also need to have had income from a pension inherited from someone who has died.

If this is you, then you need to contact the DWP to check if you’re due a payout.

How do I make a claim?

The DWP is now sending text messages or letters to anyone who might be affected by the blunder.

However, you don’t need to wait to receive a correspondence.

If you do think you’re affected, you can write to the Benefit Centre and put in a claim.

Send your letter to Benefit Centre, Freepost DWP BC 38. You do not need to use a stamp.

However, you’ll need to make sure you include the following:

• Your National Insurance number
• Copies of your pension statements showing the pension is inherited and the amounts of pension paid for the dates of your new style JSA claim
• The reference ‘PAN PEN’
• Your bank, building society or credit union account details (if they have changed since you claimed new style JSA)

The DWP will then review your claim again to see if you should have paid you more.

It will then write to you to let you know whether you are owed money.

This post first appeared on thesun.co.uk