The DWP estimates that 132000 pensioners being underpaid as a result of “ongoing control failures.”
PENSION FROM THE STATE Payments are a crucial source of income for many people, but the Department for Work and Pensions (DWP) believes that 132,000 retirees are receiving less than they are entitled to, according to a new research.
The Comptroller and Auditor General’s report on the Department of Work and Pensions’ 2020-21 accounts was released today by the National Audit Office. The research looked at benefit fraud and error, particularly the UK state pension.
Benefits and state pension payments to claimants and pensioners cost the Department £212.2 billion in 2020-21.
The state pension received £100.8 billion of this.
It was revealed in the results that the Department had made a new provision of £1 billion in its accounts for state pension underpayments dating back “at least” 30 years.
According to the report, the DWP believes that 132,000 pensioners have been underpaid due to “continued process and control problems.”
The study stated, “This is the Department’s fifth systemic underpayment recognized in the last three years.”
The Department for Work and Pensions (DWP) has stated that it intends to assess all relevant cases by the end of 2023 in order to “make good” on the official error.
The research conclusions continued, “The impact of this underpayment on individual pensioners is severe, and it is critical that the Department learns lessons to avoid systemic underpayments in the future and address past underpayments.”
Furthermore, these errors primarily impacted women and a “small number” of men who should have received additional state pensions derived from their spouse or civil partner’s contributions; widows and a small number of widowers who have not received contribution rights inherited from their spouse or civil partner that may increase their entitlement; and individuals over the age of 65.
“Our work to remedy historical state pension underpayments is difficult, and as it progresses, we are obtaining a broader understanding of the anticipated costs,” a DWP spokeswoman said.
“We’ve always emphasized that cost estimations are estimates that will be fine-tuned as the rectification process unfolds.
“As a result, we’ve committed to providing further details at the next fiscal event.
“We are completely committed to correcting the errors as soon as possible and ensuring that those who have been affected receive the state pension they are legally entitled to.”
“Brinkwire Summary News” identified state pension underpayment irregularities last year.