The state pension underpayment scandal, which has already affected over 130,000 people and could ultimately involve up to 400,000, would not have come to light without the persistence of former Pensions Minister, Sir Steve Webb. His work, supported by campaigners and advisers, has pushed the Government to acknowledge systemic failings and compensate many of those affected. But, it should never have taken this long, or relied on a single champion.
Those most affected are overwhelmingly women, particularly people who received carers benefits between 1978 and 2010, married women, widows, divorced women, and those over 80. The Government claims that married women, widows, and people over 80 should receive corrections automatically, but many still need to act. Women whose husbands reached pension age before 17 March 2008, or who divorced after reaching pension age, must contact the DWP directly to make a claim.
Next of kin can claim on behalf of deceased relatives, but this is subject to a 12-month limit unless specific circumstances apply. Thousands of families may still be unaware that they are entitled to a retrospective payment.
At the heart of the issue is a chronic failure to invest in government IT systems. Much of the state pension infrastructure dates back to the 1980s, relying heavily on manual updates and fragmented records. These legacy systems struggle to cope with complex entitlements, such as those involving carers, widows, divorcees, or women who paid the married women’s stamp, and don’t always pick up trigger events, such as bereavement or turning 80. Until we modernise these systems, similar errors are likely to continue.
This is also a question of governance. Why does the Treasury hold sign-off power for all major government expenditure, including essential IT upgrades? When fiscal control trumps operational function, systems stagnate, and people suffer. The costs of inaction are now clear: over £1.5 billion in underpaid pensions and an administrative bill that could exceed £3 billion.
The wider lesson is clear: we need a simpler, automated system that recognises care work, connects child benefit to national insurance records, and proactively corrects mistakes. Until that happens, too many people, mostly women, will remain the forgotten casualties of a broken system.
If you or a relative may have missed out on State Pension payments, you can check here. Or contact the Pensions Service to make a claim here.
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