A damning report by MPs has blasted the Department for Work and Pensions over the £1billion underpaid state pension scandal.
It levels the charge of a ‘shameful shambles’ at the DWP and said its complacency failed pensioners, with 134,000 women estimated to have missed state pension rises or payments when their husbands reached state pension age or died, or when they themselves reached the age of 80.
The report credits This is Money – the sister financial website to MailOnline and the Daily Mail – and its columnist, former pensions minister Steve Webb, for uncovering cases of women being underpaid in January 2020, bringing the scandal to light and forcing the DWP to act.
We explain below how to find out if you could be affected and get paid the money you are due.
Ignored: Many wives may have missed out because the vital forms were sent to their husbands when it was time to claim (file image)
What is the underpaid state pensions scandal?
The scandal mostly affected women who should have had their pensions upgraded by the DWP without having to ask.
Those affected reached state pension age before April 2016. They include wives entitled to a pension worth 60 per cent of their husband’s basic rate, and also divorcees and widows who could claim as much as 100 per cent.
Others who missed out include pensioners who should have been paid the minimum 60 per cent of the basic state pension after they turned 80.
What are women owed?
The basic rate state pension pays £137.60 a week, so someone on a 60 per cent rate should receive around £82.45.
Wives are entitled to the 60 per cent rate from the day their husband reached state pension age.
But a rule change in March 2008 required the Department for Work and Pensions to pay the increased pension automatically.
Those wives who reached state pension age before then had to claim the extra income themselves.
Those who were unaware can upgrade their pensions, but cannot claim all of the money they missed out on.
Do I need to act?
The DWP says those whose husband became entitled to their pension on or after March 17, 2008, do not need to take any action and will be contacted.
However, following the shambolic handling of the affair so far – and the recent state pension delays affecting new pensioners – many women may want to try to find out if they should be owed money.
Steve Webb has created a tool to help women find out if they could be affected. To find out if you’ve been short-changed, go to lcp.uk.com/is-your-state-pension-being-underpaid.
If you believe you are missing out, you can call the Pension Service on 0800 731 0469 or write to: The Pension Service, Post Handling Site A, Wolverhampton, WV98 1AF.
