devxlogo

DWP reveals underpaid pensions for mothers

Underpaid Pensions
Underpaid Pensions

The Department for Work and Pensions (DWP) has revealed that nearly 150,000 British pensioners, mostly women, have been underpaid their state pensions due to a long-standing error. The issue stems from the Home Responsibilities Protection (HRP) scheme, which was designed to protect the state pension entitlements of stay-at-home parents and carers. According to the DWP’s annual report, approximately 200,000 mothers have not received their full state pension for years.

The problem arose when the requirement to include National Insurance numbers for those claiming Child Benefit before 2000 was not enforced, leading to underpayments. The DWP has acknowledged the issue but has only addressed 419 out of the estimated 194,000 cases so far. The total payout required to rectify these underpayments is around £1.15 billion, but only £2.2 million has been paid to date.

Pension underpayments for british mothers

Former pensions minister Sir Steve Webb criticized the government’s slow response, stating, “Once the government realized that nearly 200,000 mothers may have been underpaid their pensions, action should have been taken to fix the problem with much greater urgency, especially as many of those who have lost out are now elderly.”

The urgency of the situation is underscored by the fact that only 151,000 of the estimated 194,000 underpaid pensioners are still alive. The DWP’s report suggests that the review process could extend into 2027/28, causing further distress for those affected.

This revelation has sparked outrage and calls for the government to prioritize resolving the pension shortfall swiftly to support the elderly population who have been unfairly underpaid for years. Pensioners, primarily women in their 60s and 70s, are believed to be eligible for state pension back payments of up to £5,000. HMRC is working to identify and contact the majority of those affected within the next 18 months to ensure they receive any arrears payments as quickly as possible.

See also  Ring Ad Spurs Privacy Backlash

A self-identification tool is available on the GOV.UK website for individuals to check their eligibility and apply for the Home Responsibilities Protection.

April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.

About Our Editorial Process

At DevX, we’re dedicated to tech entrepreneurship. Our team closely follows industry shifts, new products, AI breakthroughs, technology trends, and funding announcements. Articles undergo thorough editing to ensure accuracy and clarity, reflecting DevX’s style and supporting entrepreneurs in the tech sphere.

See our full editorial policy.