More than 40,000 families could be in line for an average payout of £8,900 as the Government works to correct mistakes it made in state pension entitlements.
Around 237,000 people have been underpaid the state pension by almost £1.5billion due to a mistake at the Department for Work and Pensions (DWP), and their surviving relatives could get the money if the pensioners have since passed away. The DWP originally thought that around 134,000 pensioners had been underpaid, but latest figures show the figure is nearer to 237,000 - and many of the recipients have since died without ever receiving the extra money.
And now the DWP has launched a website that lets next of kin work out if their family members were not paid enough state pension. The average amount due to be paid out is £8,900 per person - but some could get more than £40,000.
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The underpayments came about because of a mistake by the DWP, and affects many people, mostly women, getting the 'old' state pension, which is paid to people who reached State Pension age before April 6, 2016.
Many of those on low pensions were allowed to claim 60% of their state pension if their spouse or civil partner had paid higher National Insurance contributions. In previous decades, men almost always earned more than women, and this was a common arrangement, so it is thought that up to 80% of the people claiming this perk were women relying on their husband's higher contributions.
But a mistake at the DWP meant many were not given the top-up they were entitled to, with some claims dating back to 1985. The DWP previously thought fixing the problem would cost between £620million and £2.8billion, but latest figures by the National Audit Office last week shows the real bill could be substantially more, at around £1.5bn. The DWP is prioritising individuals who fall into "at risk" categories, such as those who are widowed or aged over 80, but many of these pensioners have passed away without ever getting this extra money.
The website lets families check if they might be due any money, but the DWP has warned that only six out of 10 underpaid pensioners will be traceable through the service. A DWP spokesperson tod The Mirror: "We are writing to people we know may be affected to let them know how this will be put right. But some people will not get a letter from us. This is because we do not hold all the information about every affected person.”
If you need to make a claim, you will need to provide the following information about the person who has died:
- Full name
- Date of birth
- Date of death
- Last known address, including their postcode
- Full name of their husband, wife or civil partner, if they were married or in a civil partnership
- National Insurance if possible.
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