More than 180,000 women in the UK are still waiting to receive thousands of pounds in unpaid state pension money. Even after five years, only a small number of affected women have actually been paid. This situation has caused serious concern among pension experts and former government officials.
What Is the Pension Underpayment Scandal?
This issue mainly affects married women who were part of the old state pension system, which existed before 2016. A report by LCP (Lane Clark & Peacock) in 2020 found that tens of thousands of women had been underpaid their pensions for many years, possibly since as far back as 1985.
In 2021, the Department for Work and Pensions (DWP) began correcting the problem and promised to pay arrears. The government put aside £1.1 billion for this. But so far, only £104 million has actually been paid.
How Many Women Have Been Paid?
So far, just 12,379 women have received the money they are owed. That means over 180,000 women are still waiting to get what they deserve.
Why Is the Money Not Being Paid?
The DWP has tried to reach affected women by sending 370,000 letters, but very few responded. Many women thought the letters were scams, and some didn’t believe they were eligible. Others found the online claim process difficult or confusing, especially older women who are not used to using the internet.
According to Sir Steve Webb, a former pensions minister and partner at LCP, the DWP’s approach was flawed. He said the two-step online process is complicated and not senior-friendly. “It was always going to have a low success rate,” he added.
What Did the DWP Say?
A government spokesperson said they are working hard to fix the mistakes. They said:
“We are determined to help people who have been left out of pocket due to historical errors which are no fault of their own. That’s why we wrote directly to over 370,000 people and launched an online tool.”
They also mentioned that a public awareness campaign was carried out and that regular communications would continue.
What Caused the Mistake?
An inquiry found that the mistakes date back to 1985 and were caused by:
- Outdated computer systems
- Manual processing of data
- Lack of monitoring and checking
This led to years of underpayment, which went unnoticed until recent years.
This pension underpayment scandal is a serious issue affecting thousands of elderly women across the UK. After a lifetime of work and contribution, they are still waiting for money that is rightfully theirs. The Government must now take more effective action—not just send letters or rely on online tools. These women need direct, simple help to receive their full pensions without further delays.
FAQs
Who is affected by the pension underpayment?
Mostly married women who were part of the old state pension system before 2016 are affected. They may have been underpaid for many years.
How much money is still unpaid?
Out of £1.1 billion set aside, only £104 million has been paid. So around £1 billion is still unpaid to over 180,000 women.
Why haven’t more women received their money?
Many thought the DWP letters were scams, didn’t believe they were eligible, or struggled with the online claim process.
What caused the pension underpayments?
Errors have been happening since 1985 due to outdated systems, manual processing, and a lack of proper checks by the DWP.
What is the government doing to fix this?
The DWP has sent letters, launched an online tool, and run campaigns to raise awareness. But experts say more action is needed.