Warnings people could be missing out on pension pay

FINANCIAL experts have warned some people in Leicestershire are possibly being short-changed when it come to their pension and other benefits payments.

The advice covers those entitled to receive the State Pension and other groups of claimants who may also be affected.

The warning comes on the back of resent research undertaken by finance firm Lane, Clark and Peacock (LCP).

Here are the categories of people who may be affected:

Married women on the old pension

LCP says tens of thousands of married women may have been underpaid their State Pension.

Under old State Pension system rules, married women were able to claim a basic State Pension sum at 60 per cent of the full rate – based on the National Insurance contributions made by their husband.

Since March 17, 2008, this should have been applied automatically, but it has been estimated that tens of thousands of women slipped through the net. Before then, women needed to make a second claim to get the payment increased.

Widows whose pension did not change when their husband died

Following the death of a husband, the widow’s State Pension should have been reviewed. They are able to inherit a basic State Pension of up to £134.25, depending on the late husband’s contribution record, plus at least 50 per cent of his additional State Pension.

Widows who may have been underpaid

If your husband reached pension age after March 17, 2008 and you received less than 60 per cent of his basic State Pension figure, you may have been underpaid.

Divorced women

Divorced women also need to check to see if their pensions can take account of the contributions of an ex-husband.

This is provided the woman has not remarried. Those who divorced postretirement may be especially at risk of underpayment.

Those aged 80 or over

Those aged 80 or over, who can claim a State Pension of £80.45, regardless of their National Insurance record, may need to check their pensions for underpayment, provided that they satisfy a basic residency test.

Relatives

Surviving relatives, such as spouses and children, of women whose State Pension may have been underpaid may need to check if they are entitled to receive a sum to make up the difference.

LCP said: “DWP says it is checking its records to find married women who may be underpaid. But there is the risk widows, older married women and the over 80s may be missed out.

“We have launched a petition on the Parliamentary website to seek to ensure the government uses its records to track down all those women whose State Pension is being underpaid.”

In response to the petition, the government said: “In 2008, the law was changed so married women who were getting a State Pension in their own right didn’t have to make a further claim to have their State Pension increased using their husband’s National Insurance contributions if he reached State Pension age from 17 March 2008.

“Where it has been identified someone is being underpaid State Pension, DWP have paid any backdated State Pension due in accordance with the law.”

Any individual who believes they are being underpaid State Pension should contact 0800 731 0469. Further details on how to do this through the Pension Service are available on the gov.uk website.