Back in 2020, errors were uncovered in the way that some women’s State Pension had been calculated. The following year, the Department for Work and Pensions (DWP) began making repayments, largely to women who reached State Retirement Age before 2016.
Fast-forward to 2025, and PensionsAge has recently confirmed the extent of the issue.
Having identified more than 130,000 underpayments, the DWP has so far made repayments totalling more than £800 million.
At Globe IFA, we’ve been working for a client who was affected by this historic error. With our help, she was able to make a claim and recently received a back payment worth tens of thousands of pounds.
Keep reading for a look at the issue, how to decide if you’re affected, and how to make a claim.
The errors have affected many diverse groups of women, so it’s worth checking if you can make a claim
It’s estimated that more than 200,000 women were affected by the issue identified back in 2020.
Those groups affected include:
- Married women with gaps in their National Insurance record, who reached State Pension Age before April 2016.
- Widows who reached State Pension Age before 2016, whose husband reached 65 before 17 March 2008 and whose State Pension is less than 60% of their husband’s basic State Pension.
- Women who divorced after retiring may be eligible for back payments, but only if they have not remarried.
- Women aged 80 and over, regardless of their National Insurance contribution record, as long as they pass a basic residency test.
You may worry that the amount you get back will be too small to be worth the hassle of making a claim, but we can help, and some of the repayments made so far have been large.
DWP figures confirm that:
- The average arrears amount for cases involving married women was £5,553.
- Cases involving widows have seen average payouts of £11,725.
- The average payment for cases involving those over 80 is £2,203.
This is your money, and you are entitled to it. You can contact the Pension Service or DWP directly, but this can be time-consuming, so feel free to get in touch if you think any of the above circumstances might apply to you.
The State Pension is the backbone of your retirement planning
While your State Pension might not constitute the largest portion of your retirement income, the regular and known payments can provide a solid foundation.
You might use the payments to cover fixed and known expenses, freeing up other retirement income for flexible spending on luxuries.
What’s more, thanks to the triple lock, the State Pension amount increases in line with the cost of living.
The State Pension you receive rises annually in line with the higher of:
- Average wage growth
- Inflation
- 2.5%.
The full new State Pension for 2025/26 is worth £230.25 a week. That’s £11,973 a year.
Recent government announcements regarding a potential rise to the State Pension Age almost mentioned the ongoing cost of the triple lock, so it’s vital to claim your full State Pension entitlement now.
A Globe IFA annual review leads to a big repayment
Chartered financial planner Andrew met his widowed client for an annual review back in November 2024. She was receiving a State Pension of just £200 a month, so together, Andrew and his client composed a letter to the Pension Service.
The letter was sent in November, and in June, our client arrived back from holiday to find a reply.
The Pension Service calculated a five-figure back payment with an increase to her State Pension of £220 a week!
Interestingly, she will only pay tax on the portion of the backdated payment that covers this tax year and last tax year, and so she may only pay tax on a small part of it.
This is just one example of how Globe IFA and our team our experts help our clients every day, so be sure to get in touch if you have any questions or need reassurance.
Get in touch
Please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert financial advisors can help you manage your long-term financial plans.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
