Thousands to get £6550 back from government due to underpayment errors, check if you're eligible

The Department of Work and Pensions (DWP) estimates that 165,000 state pensioners have been underpaid £1.2 billion due to system errors dating back decades.

The incorrect calculations mostly affected married women and widows who are now in their 60s and 70s and should have had National Insurance credits for the time they spent bringing up children, and people aged over 80.

DWP believes that another 210,000 people under-received £1.3 billion due to Home Responsibilities Protection (HRP) issues in the past.

DWP has now vowed to recalculate the payment and pay arrears where appropriate until the end of the year.

Here is who is eligible and what to do if you think you are owed money.

Meanwhile, DWP hands out 'special' payment to thousands on benefits, find out if you could be entitled.

You might be able to pocket £159 in TV licence refund, check if you qualify.

Thousands could receive a cash boost of over £6000

Thousands of pensioners are up for a pleasant surprise this year as DWP vowed to correct the pension underpayment error before Christmas.

Destroyed records and mistakes in calculations of Child Benefits due to incomplete National Insurance data in the past resulted in hundreds of thousands, mostly women, under-receiving the pension money they were entitled to.

If previously the government intended to repay the sums by ‘late 2024’, they have now announced that those affected will get them by the end of the year.

Payments to impacted women are expected to average £6,550 and for those over 80 - around £3,000.

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These are the groups of the population who were likely underpaid

The DWP also confirmed that the planned end date for the State Pension LEAP (Legal Entitlements Administrative Practice) exercise remains on schedule to be finished by the end of 2024.

It has been established to identify where State Pension underpayments may have occurred in respect of the following groups.

Category BL (Cat BL)

This group includes people who are married or in a civil partnership who reached state pension age before April 6, 2016, and should be entitled to a Category BL uplift based on their partner’s National Insurance contributions.

Missed conversions

The group consists of people who have been widowed and their State Pension was not increased to include any amounts they are entitled to inherit from their late husband, wife or civil partner.

Category D (Cat D)

According to DWP, people who reach age 80 and who are getting some basic state pension but less than £85.00 in 2022-23, will also be entitled to a cash boost.

In the latest report, DWP said:

As stated in last year’s Annual Report and Accounts, we are on track to complete the exercise for the customer groups Cat BL and Cat D by the end of 2023.

We expect to see a continued increase in clearance rates in 2023-24, as additional resources join the exercise and complete their training and additional rounds of automation are completed in Summer 2023.

Here is what to do if you have been underpaid

You can find out if you’re eligible by contacting the pension service on 0800 731 0469.

Their full contact details can be found here.

Earlier this year, a DWP spokesperson said:

The action we are taking now will correct historical underpayments made by successive governments.

We are fully committed to addressing these errors, not identified under previous governments, as quickly as possible.

According to DWP, they have set up a dedicated team and ‘devoted significant resources towards completing’ the repayments, with ‘further resources being allocated throughout 2023’ to ensure pensioners receive their money.

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Sources used:

- Express: 'State pension alert as thousands to get £6,550 back pay – check if you're eligible'