In February 2021, the Department for Work and Pensions (DWP) launched a Legal Entitlements and Administrative Practice (LEAP) corrections initiative to rectify previous State Pension mistakes that affected specific groups, including some widows and widowers.
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State Pension Back Payments 2024
Sir Steve Webb, a former Liberal Democrat pensions minister and current partner at Lane Clark and Peacock (LCP), has discovered additional errors in State Pension payments. He identified that some individuals who began claiming the New State Pension and were already widowed at retirement might have been underpaid, making them eligible for back payments.
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Reported Cases
Sir Steve received reports from four individuals who were not granted any inherited State Pension when they retired. The DWP incorrectly advised these individuals, either through written communication or by phone, that they were not eligible.
This information was incorrect in all four cases, and subsequently, the individuals received increased State Pension payments and arrears. In two of these cases, the underpayments exceeded £2,000 annually, potentially leading to a £40,000 deficit over a typical retirement period.
Impacted Groups
The newly identified group of affected individuals includes those who were widowed when they claimed their New State Pension. This group includes those whose deceased spouse either reached pension age before April 6, 2016, or passed away before this date.
The specific amount of inherited State Pension varies based on factors like whether the deceased spouse was employed or self-employed and whether the surviving spouse receives a widow’s pension from a company pension scheme.
Concerns and Recommendations
Sir Steve expressed concerns over the DWP’s processing of new claims, indicating that errors persist despite previous corrections. He highlighted the need for the DWP to process new claims accurately and called for an urgent investigation into the extent of the issue.
Online Resources
LCP has developed an online tool to help individuals determine their eligibility for inherited State Pension. An earlier tool designed for married women to check for underpayments received over one million visits.
DWP’s Response
A spokesperson from the DWP stated that the department is committed to ensuring pensioners receive all the support they are entitled to. They provided a tool to help pensioners understand their State Pension inheritance. Sometimes delays in State Pension awards occur when not all required information is initially provided. In such cases, the DWP issues an award based on the customer’s National Insurance record and revises the claim as soon as the necessary information is obtained.
Summary
Issue |
Details |
|---|---|
LEAP Corrections Exercise |
Launched in February 2021 to address previous State Pension errors. |
New Evidence of Errors |
Discovered by Sir Steve Webb, affecting widowed New State Pension claimants. |
Reported Cases |
Four individuals were wrongly informed about their entitlements; arrears were paid. |
Impacted Groups |
Widowed claimants of New State Pension whose spouse reached pension age or died before April 6, 2016. |
Concerns |
Continuing errors in new claims; urgent investigation needed. |
Online Tools |
LCP’s tool for checking State Pension inheritance; previous tool received over a million visits. |
DWP’s Response |
Commitment to supporting pensioners; delays due to missing information. |
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