Are You Owed Money from the State Pension?

The State Pension is meant to be a reliable foundation in retirement—a steady income after decades of working, raising a family, or both. But for thousands of people, that promise hasn’t been fully delivered.

A long-running issue with underpayments has come to light, affecting around 237,000 pensioners, most of them women. The total amount owed is staggering—over £1.5 billion—and in many cases, it’s money that should have been paid years ago.

If you’re a woman who stayed home to look after children, a widow, or someone aged over 80 receiving a low pension, it’s worth checking whether you could be one of those affected. In this article, we’ll explain how the problem came about, who it impacts, and how to find out if you’re due a refund.

How Did the State Pension Underpayment Happen?

The issue dates back decades. In many cases, it was the result of government systems not properly linking National Insurance records with Child Benefit claims, particularly for women who took time out of paid work to raise a family.

The Department for Work and Pensions (DWP) began tackling the problem in 2021. The correction process is called LEAP, short for Legal Entitlements and Administrative Practices. It’s a massive undertaking, and it’s still ongoing.

While the government has started sending out letters to those affected, not everyone will be contacted automatically—especially in more complex cases.

Who Has Been Affected?

Several groups of people have been identified as most likely to have received less than they were entitled to. These include:

• Married women who reached State Pension age before April 2016, particularly if their husbands turned 65 on or after 17 March 2008.
• Widows whose pensions didn’t increase after their husband’s death, or who may have been underpaid both before and after they were widowed.
• Women aged 80 or over who are receiving less than £80.45 per week.
• Heirs of someone who was underpaid and has since passed away.

If you fall into one of these groups, the DWP should adjust your pension automatically and send you a letter explaining the change.

However, there are also cases where people must take the initiative to make a claim. This includes:

• Married women whose husbands turned 65 before 17 March 2008.
• Divorced women who may have been entitled to a higher pension based on their former spouse’s National Insurance record.

If you think this could apply to you, it’s worth getting in touch with the Pension Service to ask for a review.

What’s Been Paid Out So Far?

As of late 2023, the DWP reported that just under £500 million had been repaid between January 2021 and October 2023. Here’s how that breaks down across the three main groups:

• Married women have received an average of just under £6,000 each, with a total of £220 million paid so far.
• Over-80s have received nearly £57 million, averaging around £2,245 per person.
• Widows have been repaid just under £220 million in total, with average payments of over £12,000.

While this is substantial, it still leaves a long way to go. The original government estimate put the total underpayment at £1.17 billion. More recently, an additional £1 billion in errors was identified, this time affecting parents who may not have had their NI credits properly recorded while claiming Child Benefit.

Former Pensions Minister Steve Webb has publicly criticised the pace of progress. In his words, the government “still has a mountain to climb” when it comes to repaying what’s owed.

How Can You Find Out If You’re Owed Money?

If your case is picked up in the government’s review, you should receive a letter explaining the change and any back payment due. But because not all cases are reviewed automatically, you may need to take action yourself.

If you think you might have been underpaid—or if you’re unsure—it’s a good idea to contact the Pension Service directly and ask for your State Pension to be reviewed.

You can reach them by phone on 0800 731 0469, or write to:

The Pension Service
Post Handling Site A
Wolverhampton
WV98 1AF

You’ll find more information and helpful links online at gov.uk.

Final Thoughts

If you’re receiving the State Pension—or supporting someone who is—it’s worth checking whether this long-standing error could apply to you. The amounts being repaid are significant, and for many people, it’s money they could have been relying on for years.

Whether you’re a widow, over 80, or a woman who stayed home to raise a family, a quick call or letter to the Pension Service might be all it takes to get the ball rolling. At the very least, you’ll have peace of mind knowing where you stand.