The Department for Work and Pensions (DWP) has uncovered a serious issue affecting tens of thousands of pensioners in the UK. Since a major review began in January 2021, more than £804.7 million in State Pension underpayments have been identified. Over 130,000 cases have been impacted, with some individuals owed as much as £12,000.
This long-standing issue has mostly affected married women, widows, and pensioners over the age of 80. If you or someone you know is in one of these groups, it may be worth checking your records.
Table of Contents
The Problem
Between January 11, 2021, and March 31, 2025, the DWP reviewed State Pension claims and discovered 130,948 cases where individuals had been paid less than they were entitled to. The errors were mainly due to administrative mistakes, outdated procedures, and failures to update pension amounts after significant life events—such as the death of a spouse.
Tragically, in some cases, affected pensioners had already passed away, and in these instances, it may not be possible for families to reclaim the full amount owed.
Who is Affected
Most underpaid pensioners fall into one of the following three categories:
1. Married Women (Category BL)
These women were supposed to receive 60% of their husband’s basic State Pension once he reached pension age. For many, this adjustment was never made, leaving them on a lower income than they were legally entitled to.
2. Widowed Pensioners
When a spouse dies, the surviving partner may inherit part of their pension. In many cases, this inheritance wasn’t correctly applied, resulting in significant underpayments.
3. Pensioners Over 80 (Category D)
People aged 80 and over are entitled to a higher pension rate regardless of their National Insurance record. Thousands did not receive this automatic increase.
Some pensioners may fall into more than one category, meaning they could be owed even more.
Average Owed
Here’s how much affected individuals in each group are owed on average:
| Group | Average Arrears |
|---|---|
| Widowed Pensioners | £11,725 |
| Married Women (Cat BL) | £5,553 |
| Over 80s (Cat D) | £2,203 |
In addition, a separate correction involving Home Responsibilities Protection (HRP)—meant to protect the pension rights of carers and parents—identified 5,344 underpaid cases worth £42 million as of September 2024.
Calls for Action
Former pensions minister Sir Steve Webb has been at the forefront of exposing the underpayment issue. He has called for urgent reform and proper compensation, noting that many affected pensioners had been underpaid for decades or died without seeing the money they were owed.
Financial expert Rachel Vahey from AJ Bell described it as one of the most serious benefit failures in recent memory and urged the DWP to resolve outstanding cases quickly and fairly.
DWP Statement
A spokesperson for the DWP acknowledged the seriousness of the issue and reiterated their commitment to ensuring pensioners receive what they’re owed.
- Most known cases have now been corrected
- A small number are still under investigation due to incomplete records or complex life histories
The DWP is continuing its review process and working to resolve all remaining cases.
What You Can Do
If you think you or a loved one may have been underpaid, here are the steps to take:
- Check your pension history
Especially if you’re a married woman, a widow, or over 80. - Contact the DWP Pension Service
Ask them to review your pension entitlement and check for possible underpayment. - Gather documents
This may include your spouse’s pension records, a death certificate, or proof of age. - Get help if needed
Organisations like Age UK and Citizens Advice can provide support and guide you through the process.
Even if your case isn’t included in the review yet, raising the issue directly could help prompt a reassessment.
FAQs
Who is most likely affected by this?
Married women, widows, and pensioners over 80.
How much money is involved?
£804.7 million across over 130,000 cases.
What is Category BL?
Women due 60% of their husband’s pension but underpaid.
Can relatives reclaim money for deceased pensioners?
Sometimes, but it depends on the case details.
How do I get a review?
Contact the DWP Pension Service directly.
