State Pension panic as 150,000 Brits left underpaid after DWP error
An annual report published by the DWP revealed almost 200,000 mothers have not received their full State Pension entitlement for years.
Around 150,000 Brits are in the midst of a state pension crisis due to underpayments, according to startling new figures from the Department for Work and Pensions (DWP).
The DWP annual report revealed almost 200,000 mothers have not been getting their full pension entitlement for years. Experts allege the issue is being dealt with at a "snail's pace".
The issue stems from the Home Responsibilities Protection (HRP), a scheme designed to protect stay-at-home parents' pensions replaced by national insurance credits in 2010.
For those claiming Child Benefit before the year 2000, claimants did not have to include their National Insurance number. That affected their HRP and meant they received less than they were suppposed to.
Despite HMRC writing to those hit by the shortfall, the DWP's annual report noted that it had only assessed 419 cases out of around 194,000.
The estimated total payout will be around £1.15bn, however so far only £2.2m has been paid.
Sir Steve Webb, ex-pensions minister and LCP partner, explained the situation.
He said: “Once the government realised that nearly 200,000 mothers may have been underpaid their state pension, 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.
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"Instead, DWP has so far assessed fewer than 500 cases out of that total, and the exercise is proceeding at a snail’s pace.
"When the Government talks about continuing the exercise into 2027/28 it is clear that this issue is not getting the priority that it deserves”.
According to the DWP, of the estimated 194,000 who were underpaid, only 151,000 are still alive.
