Shocking... thousands of women pensioners could be owed £100m
TENS of thousands of women may have been underpaid in their state pensions by up to £100million, a former minister has warned.
Sir Steve Webb, who was pensions minister between 2010 and 2015, believes the women could be owed thousands of pounds each.
He said: “It’s truly shocking that thousands of women are being shortchanged on their state pensions.
“The system is highly complex and few will be aware of the special rules for married women, widows, divorced women and the over-80s.
“Yet each of these groups seems to be losing out in different ways.”
Entitled
Sir Steve, now a partner at pension specialists Lane, Clark and Peacock, believes married women on low pensions are missing out after he filed a Freedom of Information request with the Department for Work and Pensions.
Since March 2008, married women on low pensions have been entitled to £80.45 a week when their husbands turned 65.
It equates to 60 per cent of the full basic state pension rate of £134.25.
Before that March 2008 date they needed to claim the uplift. But FOI data obtained by Sir Steve suggests that tens of thousands of older married women who would be eligible for this rate are not receiving it.
Malcolm McLean, an independent pensions consultant, said: “Knowing when you have to personally make a claim and when you don’t has always been a problem and can give rise, as here, to individuals missing out on thousands of pounds, which should be rightfully theirs. Where the women involved should have had an automatic lift but haven’t, the Government should accept responsibility for checking their records and putting things right – with full backpay.
“For others, largely older pensioners, it would be a charitable act if ministers could check their records and extend or even waive the 12-month maximum backpay period on this occasion.
“Many of these women will have very poor pensions and will have been living on them for many years.
Honoured
“For all intents and purposes their entitlement to the bigger pension exists and should be honoured in full.”
Sir Steve added: “Whilst the Department for Work and Pensions is willing to put things right on a caseby-case basis, there is clearly a systematic problem here.”
A DWP spokesman said: “We are aware of a number of cases where individuals have been underpaid state pension.
“We corrected our records and reimbursed those affected as soon as errors were identified.
“We are checking for further cases, and any arrears will be paid.”